As the Trump administration navigates complex trade policies, major US food and beverage manufacturers are urging for ‘targeted’ tariff exemptions on essential imported ingredients.
Highlights
- Major US food and beverage manufacturers have requested tariff exemptions for imported ingredients critical to their production processes.
- The Consumer Brands Association emphasized the need for the removal of specific ingredients and inputs from current tariff measures.
- Essential products like coffee, oats, spices, tropical fruits, and tin mill steel are in short supply domestically, making them unavailable from US suppliers.
- Executives have expressed concern that tariffs are already affecting their operations, with some predicting that tariffs could drive up costs.
March 20, 2025: Major US food and beverage manufacturers have requested the Trump administration to grant “targeted” tariff exemptions for imported ingredients that are critical to their production processes. In a letter addressed to the White House, the Consumer Brands Association, a key US trade body, emphasized the need for the “carefully calibrated removal” of specific ingredients and inputs from current tariff measures.
Melissa Hockstad, President and CEO of the Consumer Brands Association, pointed out that certain essential products—including coffee, oats, spices, tropical fruits, and tin mill steel—are in short supply domestically. These ingredients, essential for the production of specialty foods and household goods, are unavailable in sufficient quantities from US suppliers.
“We believe that a targeted and carefully calibrated removal of these ingredients and inputs from tariffs is vital to protect US manufacturers and support efforts to reduce consumer inflation,” the letter stated.
Despite the food industry’s continuous efforts to source ingredients from domestic farms and suppliers, some key products remain inaccessible in the US. “Agricultural conditions and other factors limit domestic production, making these sourcing arrangements unavoidable,” Hockstad added.
The Consumer Brands Association represents leading US food companies, including PepsiCo, General Mills, and Mondelēz International. In the letter, Hockstad commended President Trump’s “bold, ambitious trade policy agenda” and emphasized the importance of fine-tuning tariffs to support US manufacturing while ensuring the availability and affordability of food, beverage, household, and personal care products.
Hockstad urged the administration to continue its focus on a trade policy that strengthens the US manufacturing sector, stating, “Your leadership is crucial to restoring America as an industrial power. As you refine your approach to tariffs, we encourage you to ensure they are maximally effective without unduly impacting US manufacturers or exacerbating price increases for consumers.”
The timing of these tariff discussions is particularly critical for the US packaged food and consumer products industry. Manufacturers are already facing pressure to manage rising costs, with many worried about the potential for passing these costs onto consumers—many of whom are already dealing with the effects of recent inflationary pressures.
As US food companies continue to face rising costs, several executives have expressed concern that tariffs are already affecting their operations. Mick Beekhuizen, CEO of Campbell’s Company, warned that the tariffs could drive up packaging costs and negatively affect its namesake soup brand. Similarly, Dirk Van de Put, CEO of Mondelēz (the maker of Oreo cookies), told the press that tariffs could make manufacturing cookies and crackers more expensive.
Tom Madrecki, Vice President of Campaigns and Special Projects for the Consumer Brands Association, explained that the letter was intended to open a dialogue with the Trump administration on tariff exemptions. He emphasized the importance of strategic trade enforcement, noting that imports like bamboo fiber from Australia, which is used in absorbent pads for diapers, are unavailable domestically.
As the administration moves forward with its tariff policies, President Trump recently announced a temporary pause on tariffs for certain goods entering the US from Canada and Mexico. This suspension, effective until April 2, 2025, has been met with varying responses. Canada, for example, has decided not to proceed with a second tranche of tariffs it had planned in retaliation.
Meanwhile, new tariff measures are also being applied to imports from China, including a 10% tariff on soybeans, beef, pork, and various seafood products. Additionally, the European Union is set to impose tariffs on US food and drink imports, targeting products like meat, seafood, dairy, and alcoholic beverages.
In response, President Trump has warned that the US will retaliate with a 200% tariff on European alcohol imports, escalating the ongoing trade tensions. A meeting is planned between US and EU officials to discuss these developments and seek potential resolutions.
The complexities of these trade policies underscore the delicate balance the Trump administration must strike in its efforts to protect US manufacturing while managing the impact of tariffs on industries reliant on global supply chains. These ongoing tariff measures highlight the challenges that US food manufacturers face as they balance trade policies with the need to keep costs manageable. With price increases already affecting consumer spending and business operations, the Trump administration’s approach to tariffs will remain a critical factor for the food industry’s future.
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