Dealing With Tariffs

The health and wellbeing of horses and dogs has been BioStar’s top priority since I started the company in 2007. I knew from the beginning that providing high quality whole food supplements meant we had to do our own manufacturing, buy our own raw materials, and closely monitor every step of the production process.

The global economy

In recent years, the drive to improve human and animal supplementation to new levels of quality and efficacy has been largely supported by…

Being part of the greater global economy has allowed BioStar to source ingredients outside of the US and buy specific, patented plant extracts from varying countries.  I have always appreciated interacting with the global economy, as well as receiving the education that comes with purchasing from companies outside US borders; the expertise shared with myself and the BioStar team has been invaluable and immense. Because of this, we prioritize maintaining the integral relationships with the scientists and representatives of these companies.

The spirit of cooperation between BioStar and other companies around the world cannot be understated: it is powerful and important.

What are tariffs?

Tariffs are taxes charged on goods imported from other countries.

Companies or individuals that purchase foreign goods and bring them into the U.S. must pay this tax to the US government immediately upon importation.

The larger the percentage of tax on an imported item, the higher the likelihood that the company will pass on the tax to customers by way of a price increase.

Impacts of tariffs on consumers, companies, and the US equine industry

As of April 10, 2025, US tariffs on all countries will be 10%, excluding goods from Mexico, Canada and China. Tariffs on Mexican and Canadian goods stand at 20%, and tariffs on Chinese goods are ranging anywhere from 20% – 145%.

How long these tariffs will last is anyone’s guess.

As of April 13, 2025, exclusions to the 125% tariffs from China have been announced, which include semiconductors, flat-panel displays, smartphones, and computers. Still, a 20% tariff remains on these items.

Agricultural products from the US (for example soybeans, oilseeds, and grains) exported to China are now subject to China’s retaliatory tariff of 125%. China is also targeting the American beef market by refusing to renew export licenses for US beef imports.

Two-way street

While BioStar imports raw materials from around the world, we also export our products to Italy, Switzerland, the UK, France, Scandinavia, Hong Kong, and Canada. We also plan to export some of our products to the Middle East, with help from a veterinarian in Dubai.

BioStar sources only the best ingredients from all over the world.

Truck and car repairs

Need to get your truck fixed?

Auto parts are manufactured globally in the US, Mexico, Canada, Germany, Japan, South Korea, and China. Truck and car parts imported from China, which are subject to the whopping 145% tariff on Chinese goods, are often sold through auto part stores such as AutoZone, O’Reilly, and NAPA.

China produces CV axles, water pumps, hoses used for brakes and power steering, seats, dashboard components, and infotainment systems.

Furthermore, China is currently at the forefront of electric vehicle (EV) and EV battery manufacturing, producing two-thirds of the world’s EV batteries.

Other popular products affected

Ninety-seven percent of the clothes and shoes purchased in the US are imported.

For reference, Patagonia makes their clothes in 14 countries, including the US, Vietnam, Thailand, China, Mexico, Canada, India, Columbia, and the Philippines. Vietnam produces the largest volume of Patagonia clothing (40.69%). Nike and Skechers construct their shoes in Vietnam, China, and Indonesia. Remember, tariffs on goods, like Nike and Skechers shoes, made in China are set at 145%.

China also makes 96% of all the artificial flowers, 97% of baby carriages, 93% of children’s coloring books, and 90% of hair combs purchased in the US.

Feed and supplement ingredients

China also dominates the global production of:

Impact of tariffs on BioStar

The current tariffs on the countries we purchase from must be paid by BioStar to the US government when the raw material arrives to US Customs. There is no 15- or 30-day invoice plan. If we don’t pay when the raw material arrives on US soil, it is returned to the country of origin.

The constant changes to tariffs can also cause some uncertainty; for instance, an international order that was shipped at one tariff level may increase by the time the order reaches the US. This fluctuation could very well cause shortages in consumer products and some foods.

Of course, it is a numbers game. 

Most often, bulk raw material is ordered in Minimum Order Quantities (MOQ’s), which are typically around 25+ kilos (55.11+ pounds) for specialty ingredients.

For example: if the cost of one kilo is $50.00, that cost is then multiplied by the 25-kilo MOQ, which brings the total purchase price to $1,250.00. Adding a 10% tariff of $125.00 then brings the sum to $1,375.00, and that number doesn’t even include the cost of shipping.

That tariff figure doubles when importing from Canada or Mexico, with 25 kilos costing $1,250.00, plus a 20% tariff, equaling $1,500.00 plus shipping.

Truthfully, whether BioStar can absorb all these tariffs costs is doubtful. The lack of predictability, like knowing that tariffs could change again in 90 days, is hard on companies and consumers.

The 20% tariff imposed on Canadian goods is one thing we are certain we cannot absorb.

Alternative sourcing of specific raw materials isn’t always possible without sacrificing quality and sustainability, and it often comes with the possibilities of higher levels of heavy metal, lead, and arsenic.

We could look for cheaper, genetically modified, non-organic, untraceable farm-to-table, or denatured ingredients… but that is so against the principles and values BioStar has stood for since 2007.

BioStar will not sacrifice premium ingredients to save a buck.

Transparency

We will be posting ingredient tariff costs on each product page of our website.

You will know what the tariff increase on the affected ingredients are.

The China connection: medicinal mushrooms

While BioStar generally imports very little from China, we do source our medicinal mushrooms from a very prestigious Canadian mushroom company, of which are grown in China.

Shiitake mushrooms growing on logs

China has been growing medicinal mushrooms for thousands of years. They are masters at traditional mushroom growing: on wood substrates and under canopies.

Most US-grown medicinal mushrooms are grown on grains, which elevates the starch content. Medicinal mushrooms grown on wood in China have lower starch levels.

Since the mushrooms grown in China come to us via Canada, we are expecting the 20% Canadian import tax.

Purchasing the highest quality raw materials

There are producers and suppliers of raw materials that don’t meet BioStar’s rigorous standards. We have had the luxury all these years of being able to choose based on demonstrable quality from global sources.

Several years ago, we decided to make the switch to American-grown chia. You know, Buy American! When the two-pallet shipment arrived, the chia seeds were covered in dirt and mixed with stems and field debris. We were accustomed to getting our Chia from Ecuador, which was delivered to us clean, uniform, and ready to be used.

We returned the American grown chia.

Loyalty

There are companies we have been purchasing raw material from for years, several of which are in Canada, the EU, Israel, and Asia. BioStar has great relationships with these companies, and they with us; there is a high level of trust. Good relationships with our vendors and customers are the backbone of our business.

Immediate effects

Economic uncertainty is never good for business and consumer confidence. The unpredictability of tariffs, either enacted, paused, or threatened, affects the American economy and the global economy. All of us will feel it.

BioStar customers who do not live in the US may likely decide not to import our products for their horses and dogs due to tariffs, imposed by their home countries, levied on American goods.

The world will move on

The bitter edge of tariffs is that the global economy can move on without the US. In the last few days, new free-trade agreements have been signed by the EU and UAE, the EU is in free-trade talks with Australia, and the UK is in free-trade talks with India. China is already sending emissaries to boost trade with the rest of the world.

With the stroke of a pen, the US is losing our reliability in the global economy, as well as its reliability as a trading partner.

Fasten your seat belts

As Bette Davis famously said in the film All About Eve, “Fasten your seatbelts; it’s going to be a bumpy night.”

Unfortunately, tariffs will last longer than an evening. The bumpy ride ahead is full of the unknown.

Luckily, we have our horses, our dogs, and our cats. We have amazing and diverse horse and dog communities.  We can get instant stress relief from a nicker and from our hands on our horses’ necks. We can get immediate stress relief from our dog’s warm muzzles, a snuggle on the couch, and a cat’s purr.

In a time of tariffs and uncertainty, sharing our lives with our animals is certainly a blessing.

About the Author: With over 30 years experience in the equine and human supplement industry, Tigger Montague knows nutrition from the synthetic side as well as the whole food side. She started BioStar US in 2006 with formulas she created in her kitchen. Before she started the company, she was an avid rider and competitor with eventing and show jumping, until she got hooked on dressage in the late 1980’s. She has competed on horses she’s owned and trained all the way from training level to Grand Prix.