Dual Impact of Tariffs and Geopolitical Conflicts: Global Natural Essential Oil Supply Chain in Urgent Distress

Dual Impact of Tariffs and Geopolitical Conflicts: Global Natural Essential Oil Supply Chain in Urgent Distress

Journal of Home Fragrance & Lifestyle | Guangzhou, June 11, 2026

A report published in May 2026 by Ecovia Intelligence, an independent research institution, warns that the global supply chain of natural plant essential oils and resin-based raw materials is experiencing structural shocks, driven by the dual impacts of the U.S.’s new round of reciprocal tariff policies and the persistent spillover effects of geopolitical conflicts in the Middle East.

Tariff Dimensions

Since April 2025, the U.S. has imposed additional tariffs on essential oils and plant extracts originating from India and China. Specifically, jasmine sambac/grandiflorum concrete from India, as well as ylang-ylang and vetiver from Southeast Asia, have been subject to an approximate 10% surtax, which has elevated the global benchmark procurement costs.

Geopolitical Dimensions

Armed conflicts in the Middle East have led to a sharp rise in shipping risks in the Strait of Hormuz. Exports of frankincense from Oman and Somaliland, and myrrh resin from Ethiopia and Yemen, have been delayed—maritime transportation cycles have extended by 45 to 60 days, war risk insurance premiums have doubled, and some traditional supply sources have faced short-term disruptions.

The report indicates that the landed prices of frankincense and myrrh have increased by 25% to 35% year-on-year, while the price of Indian jasmine absolute has risen by over 20%. Small and medium-sized natural fragrance brands generally confront a triple dilemma: diluting product formulations, raising end-market prices, or experiencing a halving of profit margins.