Tiger Balm’s Tariff Struggles: A Symbol of the U.S.-China Trade War’s Toll on Niche Imports

Tiger Balm Faces Tariff Struggles in Trade War

The Ache of Tariffs on a Century-Old Remedy

For over a century, Tiger Balm’s distinctive menthol-camphor aroma has soothed muscle aches, headaches, and arthritis pain. But today, this iconic ointment—endorsed by celebrities like Jeremy Lin and Lady Gaga—faces a modern-day challenge: the escalating U.S.-China trade war. With its sole American distributor and single Chinese factory, Tiger Balm has become a poster child for niche importers caught in the crossfire of punitive tariffs, supply chain fragility, and geopolitical tensions.

As President Donald Trump’s administration imposes tariffs as high as 145% on Chinese goods, businesses reliant on specialised imports with no Western alternatives are grappling with existential pressures. For Tiger Balm’s U.S. distributor, Livermore-based Prince of Peace Enterprises, these tariffs could add $3–5 million in costs this year alone. While prices for the beloved balm remain stable—for now—the strain on distributors, retailers, and consumers underscores the broader economic pain of a trade war with no clear end in sight.

The Anatomy of a Trade War Squeeze

1. A Fragile Supply Chain Exposed

Tiger Balm’s U.S. operations hinge on a precarious setup: all products are manufactured at a factory in Xiamen, China, and distributed exclusively by Prince of Peace. This lack of diversification leaves the brand uniquely vulnerable. Matt Chin, president of Prince of Peace, explains, “We’re a single point of failure. If tariffs rise further, we have no backup plan”.

The balm’s $30 million annual U.S. sales—supplied to giants like CVS and Walmart—now face a double blow: existing 20% tariffs on pharmaceuticals and threats of additional “major tariffs” flagged by Trump. Though pharmaceutical imports are temporarily exempt from new “reciprocal” tariffs, Chin warns that any fresh levies could force price hikes, alienating loyal customers.

2. The Price of “Patience”

Prince of Peace has absorbed rising costs to shield consumers, but this strategy is unsustainable. Retailers like Walmart demand 90 days’ notice for price changes, leaving distributors to “eat the difference” if exceptions aren’t granted. “We’re the last to raise prices,” Chin says, “but there’s only so much we can swallow”.

The dilemma extends beyond Tiger Balm. Prince of Peace also imports ginseng, herbal teas, and supplements with no Western equivalents. These products, critical to Asian American communities, face similar tariff pressures, squeezing margins for small Chinatown shops already operating on razor-thin profits.

Broader Implications: Trade Wars and the “Invisible Tax”

1. Consumers Bear the Brunt

Research by the American Action Forum reveals that U.S. tariffs disproportionately hurt domestic consumers and businesses, costing households $1,243 annually and slashing real income by 1.2% in 2025. For niche goods like Tiger Balm—where substitutes don’t exist—the burden is even sharper.

Yan Liang, an economics professor at Willamette University, notes that such products don’t compete with U.S. manufacturing but sustain service-sector jobs. “Distributors are caught between absorbing costs or losing customers. Either way, they’re squeezed”.

2. A Global Ripple Effect

Trump’s April 2025 tariffs—a 10% baseline levy, plus “reciprocal” rates up to 49%—have upended global trade. China retaliated with 125% tariffs on U.S. exports, while niche importers worldwide scramble to reroute supply chains1213. For Tiger Balm, relocating production is fraught: its formula and brand identity are tied to its Chinese heritage. As Chin notes, “You can’t replicate a century-old remedy overnight”.

Community Resilience Amid Uncertainty

1. Chinatown’s Struggle

In San Francisco’s Chinatown, family-run shops like Edward Lau’s Ellision Enterprises face existential threats. With 90% of inventory imported from China, tariffs on items like medicated oils and dried herbs threaten cultural staples for elderly, fixed-income residents. “Prices will rise,” Lau says. “It’s a certainty”.

Mill Lei, owner of Ming Lee Trading, echoes this sentiment. Her shop supplies low-income programmes with traditional ingredients, but tariffs risk reversing years of community outreach. “The impact falls hardest on ordinary people,” she laments.

2. Advocacy and Adaptation

Chin, who also heads the Oriental Food Association, is lobbying trade representatives for exemptions on irreplaceable goods. Meanwhile, distributors explore stopgaps: bulk purchasing, inventory hoarding, and value-based pricing to justify future hikes.

Yet optimism persists. Chin recalls weathering 25% tariffs in 2018 and believes solidarity will see businesses through. “It’s a blow to morale, but we’re strong. We’ll adapt, as we always have”.

Conclusion: A Balm Without Borders?

Tiger Balm’s story mirrors the human cost of trade wars. Beyond the headlines of GDP dips and tariff rates lies a fragile ecosystem of small businesses, cultural traditions, and consumers reliant on niche imports. As the U.S. and China dig in, the question remains: can remedies like Tiger Balm—transcending borders for over a century—survive modern protectionism?

For now, Prince of Peace and its peers walk a tightrope: balancing loyalty to customers with the harsh arithmetic of tariffs. Their resilience, much like the balm’s enduring appeal, hinges on a blend of tradition, ingenuity, and hope.


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