Impact of Chinese tariff on American ginseng products

The word ‘Ginseng’ has come from a Chinese word ‘renshen’ that means “Man Root”. The shape of this everlasting plant resembles the legs of a man that is why it is known as “Man Root”. The American ginseng products have always been desired and coveted by the Chinese for thousands of years as a Natural Curative. It is a trend that the US ginseng products are exported to Asian countries. In Asian countries, Ginseng root is believed to be good to health. It is usually consumed in beverages as well as soups. Ginseng is commonly known as “king of herbs”. It is believed to contain a high medical value in traditional Chinese medicine. It really improves cognitive power. It restores vitality, reduces the stress and also serves as an anti-inflammatory. The Ginseng root is consumed fresh or dried.

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Nowadays, China’s tariffs are affecting various American products. According to the recent reports, these tariffs have a huge target on 128 U.S. products. These include almonds, wine as well as American Ginseng. You will be surprised to know that the most popular root for herbal remedies and tea, American Ginseng, is facing approximately 15 percent tariff. The ginseng that is grown in America is usually shipped to China and almost all of it is grown in Marathon County, Wisconsin. This marathon county is well-known for its high-quality ginseng due to the good soil and weather conditions. It accounts for over 90 percent of the total cultivated ginseng output of the United States.

Probably the reason why you have landed on this page is that you are looking for the impact of Chinese tariff on American ginseng products. Believe me, you are in the right place, reading the right article. Because this article highlights the impact of Chinese tariff on American ginseng products. So, people, take notes of what we are about to tell you because this article will actually be very useful for you in the long run.

How Chinese tariff is affecting American ginseng products?

With the ongoing US-China trade frictions, some customers, who have expressed interest in purchasing American ginseng products, have backed off. The reason behind this is that they are scared about what China’s tariffs are going to do to their profit margins.

The increase of China’s tariffs on American ginseng products is, in fact, a retaliatory measure against the U.S. It also aimed at protecting the Chinese product, according to Hsu. These new tariffs have greatly affected the exports of the country. In the coming days, it will eventually affect the employment at the farms in the longer term.

Back in the year 1980, the Marathon County, Wisconsin, used to have more than 1,300 American ginseng growers. But now, unfortunately, there are only around 150 left. This is all due to the increase of Chinese tariffs on American ginseng products.

According to the U.S recent reports, after the increase of Chinese tariffs, the average selling prices of U.S. ginseng are at least 15% higher in the Chinese market. This action gives much room for Chinese ginseng to stretch its market share in the Chinese market. As a result, consumers are turning to cheaper substitutes and the sale of American ginseng is decreasing day by day.

To overcome the negative effects of Chinese tariff on American ginseng products, U.S is making efforts to collaborate with Hon Hai Precision Industry, also known as Foxconn Technology Group. Foxconn Technology Group has approached local ginseng growers, including Hsu’s American Ginseng to look for opportunities to export other U.S. products to overseas markets. It will definitely be a source of big help in regaining U.S. ginseng’s market share in Asia!


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