Tariffs Are Back on the Menu — and the Food and Beverage Industry Can Taste It

Local and national news reports are serving up fresh reminders that proposed tariffs are once again reshaping the food and beverage landscape. If changes are not made to the proposed tariffs, business owners can expect changes including:

Trade Wins: As reported by Reuters, the U.S. and U.K. have reached a new trade deal that cuts car tariffs and eliminates the 25% tariff on U.K. steel. For our sector, the real entrée is improved access for beef and ethanol — U.K. producers get a tariff-free beef quota of 13,000 metric tons, while U.S. ethanol gets a smoother pour into British markets.

Tomato Trouble: According to The Washington Post, a tariff war is heating up between Florida tomato growers and importers. With the U.S. set to withdraw from a key trade agreement, a 17.1% levy will hit Mexican tomatoes this July. That’s no small hit — Mexico supplies about 65% of America’s tomatoes. Expect volatility, especially for cherry, grape, and vine-ripened varieties.

Juice Gets Juicier: And in case that wasn’t enough, Wired reports that apple juice imports — many of which come from China — could be the next to feel the tariff pinch. If you’re in the beverage game, brace yourself for tighter margins and price pressures.

Facing questions about how proposed tariffs may affect your business? Contact Kevin Slaughter or another member of LP’s Corporate group.