An order placed by Thomas Leon from Manhattan in January is on hold at a drug factory in Chengdu, China.
This shipment contains a variety of concentrated herbal granules used in traditional Chinese herbal medicines. There is a dungie, also known as the Angelica root, which is used to treat gynecological diseases. Chai Hu, or Bupleurum Root, an herb that is frequently used to calm the nerves. and the roots of Huang Qi, an immunity-promoting tonic herb, or Astragalus.
It is not clear when the cargo will land on New York City's staple Camwomeridian Herb for over half a century. Once it arrives, the herbs will be distributed to practitioners and patients seeking to treat colds, pain and other illnesses, but for now the herbs have to sit down.
Kamwo CEO Dr. Leung suspended the order after President Trump placed a minimum 145% tariff on all Chinese products last month. China responds by increasing the tariffs on US goods to 125%, and the resulting standoffs effectively freeze trade between the two countries.
Traditional Chinese herbal medicine is just one of many industries that has been overthrown by tariffs and uncertainty. Already few ships arrive at American ports, and consumers may start looking at empty shelves by early June.
The trade war caused paralysis among importers, said Dr. Leong, a fourth-generation herbal pharmacist and a third member of his family, is leading Kamwo. Even if he was willing to pay the import tax, he said he would risk sticking to legally expensive stocks, which means that few people would buy if the tariffs were reversed.
“No one has done anything until we know what the hell is going on,” he said.
Since opening the door in 1973, Kamwo has filled prescriptions written by traditional Chinese herbal medicine practitioners and sold herbs in pounds. However, recently we have stopped selling ads. Dr. Leon said that herbs and supplies have already been in place, with prices jumping, as imports have been suspended effectively.
Space and time also limit how much a typical traditional Chinese medicine clinic can replenish these supplies. Herbs can get worse or older. Even if it is possible to stock up large supplies, there is a question of where to store them.
Before the tariffs were announced, Kamwo expected to acquire $6.5 million in revenue this year, Dr. Leung said. Kamwo is fortunate to be a big company with “probably eight months of herbs” in hand, but “not every small company has that luxury,” he said.
Slim margin, high stakes
“Arthur Dong, a professor at Georgetown University's McDonough Business School, said traditional Chinese medicine (the drives between immigrants and American consumers to seek relief.”
It is unclear exactly how big the TCM industry is in the US. According to Statista, China exported nearly $5.5 billion in traditional Chinese herbal medicines in 2023, up from $3.6 billion in 2017.
A long-term trade war harms the TCM industry just like other niche but popular sectors. Jaya Wen, an assistant professor at Harvard Business School, said TCM is “probably likely to be significantly more negatively affected than other industries.”
Many pharmacies are small moms and pop shops operating on a thin margin of razors. Once they run out of stock, they are left with scheduled naked shelves, businesses coming in, rent checks that are scheduled each month. Tariffs can also threaten the livelihood of people along the supply chain, such as shopmates gathering orders and truckers who transport these materials to their final destinations.
He said many of the herbs used in TCM cannot grow outside of China and are being processed by skilled workers following highly specialized methods established many generations ago.
“It's not possible if you create a list of all the things you need to promote it, like the Chinese herb industry in the US,” he said. “It's literally impossible.”
The US disruption to TCM “is going to be pretty widespread. It's just one narrow industry,” Dr. Don said. “This is one of the thousands of industries affected.”
Trump frequently changes his mind, so Dr. Don said it's difficult for businesses to plan for the future. That's why “You've seen Gear of Commerce go to a halt of crushing.”
“Whether large or small, CEOs of any company are willing to invest, get loans, increase trade, or commit to anything beyond the next two months because of this uncertainty,” he said.
Yet despite the economic challenges, GA Donovan, a fellow at the Asian Association's Institute of Policy Studies, said he “doesn't count this industry.”
Chinese TCM practitioners have experienced a “very turbulent 20th century.” As a result, he “has the resilience to manage this,” he added.
“You could expect them to respond to this challenge with a lot of ingenuity,” he said.
Treatment of “everyday people”
Kamwo is shipped to all 50 states, Canada and Europe, with around 75% of its customers being not Chinese, Dr. Leung said.
Among them is Lynn Pierre, 58. He walked to Kamwo on a sunny Friday afternoon, trying to fill her prescription. As a runner, she has not been able to keep her injured using TCM at various points in her life, but now she is worried that the expensive medicines she takes will cost even more.
“Of course I'm worried,” Pierre said, sitting on the stool inside the store, adding, “I think it's going to be a little more expensive.”
Pierre said it's already difficult to make a living, especially with rising costs these days. The idea that herbs are even more expensive than they already do is difficult.
“That's not easy,” she said. “That's really hard work.”
Acupuncture, an ancient Chinese medical technology for pain relief, can also feel the effects of the trade war.
Dr. Beth Nugent, president of the Acupuncture Association in New York, said most acupuncture practitioners are “active at a very slim margin,” adding that she and her colleagues “are not charging people much because they love what we do.”
Herbs, tonics and needles are essential to Dr. Nugent's practice. Some items, such as needles, have other sources, but “may not be as high quality as what you can get from China,” she said.
“If I can charge someone the minimum I can afford to come for acupuncture, that's what I'm trying to do,” she said.
She is worried about patients who may not be looking for her if she is forced to raise the price, as they can no longer afford treatment. She thinks about hockey players who helped her return to the ice, a couple who eventually became pregnant after a struggle for fertility, and a patient with dizziness that has returned to her feet.
“It's not esoteric or anything that's out of the realm of everyday people,” she said. “It's the everyday people who are receiving this treatment.”
