Major US food and beverage manufacturers have asked the Trump administration for “targeted” tariff exemptions on imported ingredients.
In a letter to the White House, US trade body Consumer Brands Association requested the “targeted and carefully calibrated removal” of a selection of ingredients and inputs from US tariff measures.
Melissa Hockstad, the association’s president and CEO, highlighted a “lack of domestic supply” of products including coffee, oats, spices, tropical fruits and tin mill steel.
“While CPG companies make every effort to source ingredients and inputs from US farms and suppliers, some key ingredients and products simply are not available in the US,” Hockstad wrote.
“These sourcing arrangements are dictated by agricultural growing conditions and other factors that make US production impossible or extremely limited.”
Consumer Brands Association counts US food companies including PepsiCo, General Mills, and Mondelēz International among its members.
In the letter, Hockstead said under President Trump’s “leadership”, the US is “pursuing a bold, ambitious trade policy agenda that is already showing results”.
She added: “Your leadership and willingness to take tough stances is critical to restoring America as a land of opportunity and industrial power. As your administration takes action to strengthen US manufacturing, we encourage you to continue fine-tuning your approach to tariffs to support an America First agenda and ensure that manufacturers already making products in the US can ensure the availability and affordability of food, beverage, household and personal care products.
“As you pursue your trade policy agenda, we believe there’s a path to elevate your approach on tariffs to ensure that they deliver maximal impact without undue consequences on prominent US manufacturers and the compounding nature of price increases that consumers could see at the grocery store.”
Last Friday, Trump announced another change to his tariff measures, pausing the levies on certain goods entering the US from Canada and Mexico.
The US President suspended tariffs on goods covered under the three countries’ USMCA trade deal.
Three days earlier, Washington imposed its planned 25% tariff on imports from Canada and Mexico, lined up by Trump upon taking office, when he cited concerns over immigration and the imports of fentanyl into the US.
Trump had already paused the plans once after talks with Canadian Prime Minister Justin Trudeau and Mexico President Claudia Sheinbaum, though he said the suspension would elapse on 4 March.
The suspension lasts until 2 April. In response, Canada “will not proceed” with the second tranche of tariffs it had lined up, Finance Minister Dominic LeBlanc said on X.
A 25% US tariff still applies on goods that do not meet rules-of-origin criteria in the USMCA deal.
Last Tuesday also saw the US impose another 10% tariff on China. Beijing responded by announcing it would introduce “additional tariffs” on a selection of US imports, with tariffs of both 15% and 10% being applied.
US goods subject to China’s 15% tariffs include fresh, chilled and preserved chicken products, wheat and corn.
The 10% tariffs will be applied to soybeans, beef and pork goods and a long list of fish and seafood.
On Wednesday, the EU announced US food and drink imports would be among products hit with tariffs as it responds to Washington’s decision to tax steel and aluminium shipments.
US food items including meat, seafood, dairy and confectionery will be hit by the newly-announced levy on €26bn ($28.4bn) worth of American goods.
The EU is also targeting drinks including beer, wine, gin, whiskey, rum, Tequila and non-alcoholic drinks derived from milk.
Brussels plans to introduce the tariffs in two steps, starting on 1 April and fully in place from 13 April.
Yesterday, Trump took to social media to warn the EU he would impose a 200% tariff on the bloc’s alcohol imports to the US.
An official at The European Commission told Just Drinks today there is a call planned this afternoon between US Commerce Secretary Howard Lutnick, the country’s Trade Representative Jamieson Greer and Maroš Šefčovič, the EU’s Commissioner for Trade and Economic Security.
