WASHINGTON—The U.S. food industry is bracing for wide-ranging impacts following President Trump's announcement of sweeping “reciprocal tariffs,” which will push U.S. tariff levels to their highest point in a century. In a new blog post from FMI—The Food Industry Association, Vice President of Tax, Trade, Sustainability and Policy Development, Andy Harig, outlined the potential consequences for food retailers, suppliers, and consumers.
“We may not be in a full-blown trade war quite yet, but we are facing one of the greatest challenges the post-World War II global trade systems has seen. After last Wednesday’s announcement of broad “reciprocal tariffs” by President Trump, we are now facing the highest tariff levels in a century – a scenario that has created a lot of uncertainty and confusion. Given the swirl of misinformation, it’s important to lay out how reciprocal tariffs will impact the food industry.”
While food and agricultural goods from Canada and Mexico will remain largely unaffected due to protections under the U.S.-Mexico-Canada Agreement (USMCA), many imported products from other regions will see significant tariff hikes. These include staple and specialty items such as seafood, wine and spirits, coffee, spices, and select dairy and meats — many of which are imported from countries now facing tariffs between 20% and 47%.
Particularly vulnerable are goods that lack domestic U.S. production, like tropical fruits and certain spices, and packaging materials like plastics, steel, and aluminum. Harig noted that these cost increases could ripple across the supply chain, potentially leading to consumer price hikes.
Despite the uncertainty, Harig advised industry stakeholders to remain adaptable, transparent, and communicative with customers. He also stressed that while supply chains may be strained, there is no need for panic buying, especially for domestically produced goods.
“While we can’t know with certainty what the future holds,” Harig wrote, “it is worth staying hopeful that we’ll have more clarity on the situation in the coming months and that the Trump administration will have negotiated better trade terms for the United States.”
“While we can’t know with certainty what the future holds, it is worth staying hopeful that we’ll have more clarity on the situation in the coming months and that the Trump administration will have negotiated better trade terms for the United States,” Harig concludes.
