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The Trump administration has imposed new tariffs of 10% and 12.5% on goods from 60 of the US’s largest trading partners, covering 99.4% of US imports, after the Office of the US Trade Representative (USTR) concluded that each had failed to impose or effectively enforce a prohibition on imports produced with forced labour.

The action, which takes effect from today (24 July 2026), will have implications for food and beverage companies operating across global supply chains, with tariffs covering products from major agricultural and manufacturing economies including China, India, the European Union, the UK, Canada, Mexico, Thailand, Vietnam, Brazil and Australia.

The new tariffs, imposed under Section 301 of the Trade Act of 1974, replace a temporary 10% global tariff that expired at the same time after 150 days.

Under the final action, the US will impose a 10% tariff on goods from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago and the UK, unless specifically exempted.

Goods from the European Union and Taiwan will be subject to a combined tariff rate of 10%, including existing most-favoured-nation (MFN) duties. For Japan, South Korea and Switzerland, the combined MFN and Section 301 tariff rate will be capped at 12.5%.

A 12.5% tariff will apply to goods from the other economies covered by the investigations, including China, Brazil, Australia, Thailand, Vietnam, South Africa and New Zealand.

The tariffs mark the White House’s latest move to restore President Donald Trump’s near-global tariff regime after the US Supreme Court struck down his ‘Liberation Day’ tariffs earlier this year.

The court ruled in February that the administration had exceeded its authority when it imposed tariffs of between 10% and 50% under a national emergencies law. The ruling prompted tens of billions of dollars in potential refunds and forced the White House to seek alternative legal mechanisms for imposing broad import duties.

Supply chain challenges grow

For food and beverage manufacturers, the move adds another layer of complexity to already pressured global supply chains, with companies facing uncertainty over the cost and availability of imported ingredients, agricultural products, packaging and other production inputs.

The final action includes exemptions for products where tariffs could create domestic shortages, cause wider economic disruption or where sufficient alternative supply is not available. The exemption list includes certain animal products, seeds, vegetable products, sugar and sugar-containing products, unflavoured instant coffee, fertiliser and pesticide inputs, among other categories.

The exemptions reflect the global nature of food production. The USTR acknowledged that some imported products are difficult to replace with domestic supply and that additional duties could increase costs for US consumers and businesses.

Certain animal products used in livestock, poultry, aquaculture and pet food production were exempted after industry comments highlighted the limited opportunities for import substitution.

The decision to exempt certain sugar imports is also significant. The US does not produce enough sugar to meet domestic demand, meaning imported supplies remain an important part of the food manufacturing system.

Unflavoured instant coffee has also been exempted because it is not available from US sources in sufficient quantities for consumers and value-added manufacturers.

The final action includes an additional 471 product exemptions, but companies will need to assess products at the individual tariff classification level rather than assume that an entire ingredient or product category is excluded.

Implications for food and beverage

This new tariff regime could accelerate a shift towards more diversified sourcing strategies. US manufacturers importing ingredients, agricultural commodities and packaging from affected countries could face higher landed costs, while suppliers may pass additional duties through the supply chain.

Although many essential food products have been exempted, the industry remains highly dependent on global trade. Products such as coffee, sugar, fruit, seafood, spices, oils, grains and speciality ingredients often rely on international production networks that cannot be quickly replicated domestically.

Moving supply chains is not straightforward, with agricultural production shaped by climate, soil, water availability and existing infrastructure, while food manufacturing often relies on specialised processing capabilities concentrated in regions.

The result could be greater pressure on manufacturers to balance tariff exposure against supply continuity, product quality and cost.

The new duties also highlight the growing importance of supply chain traceability and forced labour compliance.

Rather than targeting only individual products directly linked to forced labour, the Section 301 action applies broadly to goods from economies investigated by the US Trade Representative. This could increase pressure on food and beverage companies to understand conditions further upstream in their supply chains.

For businesses sourcing commodities through multiple tiers of suppliers, greater visibility over the origin of raw materials and the labour practices involved in their production could become increasingly important.

The wider tariff environment has also highlighted the significance of specific trade agreements and exemptions for the drinks industry.

Nodjame Fouad, CEO of Pernod Ricard’s aged spirits and champagne division, welcomed the return to tariff-free trade for Scotch whisky between the UK and US.

She said: “The return to tariff-free trade for Scotch whisky between the UK and US – the world's most valuable Scotch whisky market – is very welcome news for our industry. This move will improve access for American consumers to iconic Scotch whiskies such as The Glenlivet, while supporting businesses at home, and strengthening the long-standing trading relationship between the UK and US spirits industries.”

Fouad called for further progress on tariffs affecting other spirits and wine categories, including Irish whiskey, Champagne and Cognac.