NHP leaders offer thoughts on dealing with current and future US-imposed tariffs
As we go to press, the US-imposed tariffs are ever evolving, causing confusion and concern in Canada, Mexico, and other US trading partners worldwide.
CNHR reached out to some leading industry members to get their thoughts on what type of impact tariffs could have on the Canadian natural health industry.
Bernie Desgagnés is president and CEO of Source Nutraceutical Inc. in Winnipeg, Manitoba. His organization offers a wide array of services to companies for market entry, including regulatory compliance, food safety compliance, packaging design compliance, quality assurance, and clinical trials.
In the early stages, Bernie says the tariffs have created a great deal of uncertainty with companies, forcing them to rethink many aspects of their businesses. “The current political climate has certainly created challenges for many industries, and companies are putting a lot of effort into developing backup plans to deal with potential tariff impacts. Right now, it’s still a bit unclear how Canadian businesses will be affected, especially since US trade policies seem to change frequently, and there aren’t always clear guidelines to accompany these changes.
“The Canadian government has introduced its own set of retaliatory tariffs, affecting a range of US products. While supplements aren’t directly targeted, some of the ingredients and materials needed for production could still be impacted.
“Because of this uncertainty, many Canadian companies are rethinking their reliance on US manufacturing. Some are considering bringing production back to Canada, while others are looking to diversify their supply chains and source ingredients from other countries. This helps them keep better control over production costs and, ultimately, maintain competitive pricing for Canadian consumers.
“For the natural health product sector, pricing remains a key competitive advantage, especially as the market continues to grow. At the same time, many US companies are still looking to expand into Canada, despite the shifting tariffs and regulations. So, while there are certainly challenges, there are also opportunities, and careful planning is key to navigating this evolving landscape”.
The best way to get through this time, explains Bernie, is by leaning on the partnerships and relationships that have been cultivated over the years.
“At the end of the day, we’re all in the same boat when it comes to tariffs. We’ve built strong relationships with many US and Canadian brands, and we’re staying on top of what’s happening on both sides of the border so we can create the best plans moving forward.
“Politics will always be what it is, but right now, our strength lies in the understanding between the people who must deal with these decisions that are beyond our immediate control. I think both Canadians and Americans know that the way forward is by strengthening our communities and working together. We’re all in this together.”
When asked if a business can take steps to make itself immune to the current and future tariffs, Bernie is doubtful.
“Honestly, I don’t think ‘tariff-proof’ is something many businesses can fully achieve. However, what I do believe is that the success of a brand will really come down to how well they can adapt to these changes. Being proactive and developing strategies for the future is key to staying ahead of the curve. It’s all about being flexible and ready to adjust as things evolve.
“Ultimately, we have to listen to the experts. From what I’ve observed, they stress the importance of diversifying supply chains and staying informed about changing policies so businesses can be more adaptable. I think that’s the best we can do at this time.”
Retailer’s perspective
Sanjiv Jagota offers a retailer’s perspective on the tariff issue. He is the founder and CEO of the Nature’s Source and Nature’s Signature group of 18 stores in Ontario. He says navigating tariffs calls for resilience and clarity.
“As the US-imposed tariffs continue to create uncertainty across international markets, specifically Canada and Mexico, those of us in the Natural Health Products (NHP) industry must be both vigilant and proactive. These shifting trade dynamics may bring real impacts to our industry—particularly for retailers—and it’s essential we prepare ourselves and our teams accordingly.”
Sanjiv says the tariffs will have both short- and long-term impacts on natural health retailers. “If fully implemented, these tariffs could introduce cost pressures across the supply chain. While we are fortunate that 60 to 70 percent of our products are Canadian, even those items may be affected due to the global nature of ingredient sourcing, particularly when raw materials or packaging components are imported. In the short term, we anticipate potential price increases and product availability fluctuations. Long term, these tariffs may accelerate the need for supply chain localization and greater resilience in procurement strategies.”
During these transitional days, he says communicating with customers in an open, honest manner will be vital.
“Our message to customers will be clear, transparent, and grounded in trust. We are closely monitoring updates from industry partners like the Canadian Health Food Association (CHFA) and Purity Life, and we’re actively engaging in discussions with manufacturers to understand how they are adapting their sourcing and logistics strategies to reduce the impact.
“Our frontline staff have been briefed to communicate honestly and empathetically with our clients. Customers trust us to be informed and transparent—and we will continue to reinforce that confidence by providing timely information, answering questions, and focusing on the value and quality of the products we offer.”
When asked if a retailer can be “tariff-proof,” Sanjiv says, “While no retailer is fully immune to global trade shifts, there are steps we can all take to become more resilient. At Nature’s Source and Nature’s Signature, we are working hand in hand with our purchasing team and category managers to ‘buy smart’—seeking out suppliers who can offer better pricing structures, working with Canadian partners where possible, and planning purchases in a way that minimizes exposure to volatility.”
Sanjiv encourages his peers across the NHP retail landscape to do the following:
Stay informed by attending CHFA and networking with key distributors.
Deepen partnerships with domestic manufacturers and suppliers.
Train staff to communicate effectively with customers about supply chain changes.
Share best practices within the industry to strengthen collective resilience.
“We’ve built our business on trust, service, and a strong connection with our community. That won’t change. What will change is how we continue to evolve, adapt, and lead during uncertain times. Together, as an industry, we’ll come through stronger.”