More than 90 percent of ginseng produced in the United States comes from Wisconsin. This agricultural product is generally exported to other countries. However, because more than 50 percent of ginseng exports go to mainland China and another 44 percent go to Hong Kong, the entire ginseng farming industry in Wisconsin has been hit hard by the ongoing trade war between the U.S. and China and the more recent Trump tariffs.
Will Hsu, owner of Ginseng Enterprises, one of the largest exporters of ginseng to Asia, explained in an interview with PBS that the first round of the trade war with China in 2018 under the first Trump administration saw Chinese retaliatory tariffs for American-produced ginseng increasing from 7.5 percent to 32 percent.
The more recent tariffs under the second term of Trump, which were rolled out between March and April 2025, resulted in additional retaliatory tariffs from China. Exported American-produced ginseng to China now has a 117 percent tariff. Hsu noted that customers in China have either delayed or canceled their orders.
Another report published by Civic Media noted that Chinese importers are currently facing 147 percent tariffs on Wisconsin ginseng. Producers now have a warehouse full of unsold ginseng. A portion of the stockpile includes the remaining inventory from 2024. Farmers in Wisconsin are also not keen to plant ginseng.
Hsu, in an interview with Civic Media, underscored the fact that a lot of companies in mainland China have chosen not to import ginseng from Wisconsin because of importation costs. They have specifically opted to import the product from Canadian producers or purchase them from domestic producers in China.
Data from the Wisconsin government showed that cultivated ginseng generates about USD 20 million each year in gross income statewide. The industry is primarily concentrated in Marathon County. Moreover, while some of the domestic ginseng outputs are sold in the domestic market, most are still sold via exportation.
Several ginseng farmers and exports in Wisconsin have sought alternatives. Hsu noted that export companies have explored markets in Malaysia and Singapore with Chinese minorities. Taiwan is also an established market for American ginseng. However, some farmers have been thinking of abandoning ginseng farming.
FURTHER READINGS AND REFERENCES
- Freyberg, 5. 18 April 2025. “Will Hsu on Wisconsin Ginseng Exports, Tariffs, and Trade War.” PBS. Available online
- State of Wisconsin. n.d. “Ginseng Registration.” State of Wisconsin Department of Agriculture, Trade and Consumer Protection. Available https://datcp.wi.gov/Pages/Licenses_Permits/GinsengRegistration.aspxonline
- Tomei-Olsen, S. 5 May 2025. “Wisconsin Ginseng Farmers Losing Buyers Due to 147% Tariffs.” Civic Media. Available online