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Melissa Bradshaw

Melissa Bradshaw

3 April 2025

F&B industry prepares for further disruption following Trump's new global tariff plan

F&B industry prepares for further disruption following Trump's new global tariff plan

US president Donald Trump has announced a new set of tariffs on all countries that export products, including food and beverages, to the US.


On Wednesday 2 April 2025, Trump announced that a 10% base tariff on all countries would take effect on 5 April at 12.01am EDT. Countries that will face this 10% base rate include the UK, Australia, New Zealand, Brazil and Saudi Arabia.


The White House also announced plans to implement individualised higher tariffs on the countries with which the US has the largest trade deficits, taking effect from 9 April. China has been hit with a 34% reciprocal tariff on top of the existing 20% announced in early March, taking the total rate to 54%.


Imports from the European Union will face a 20% tariff rate. This follows the EU’s announcement last month that it would impose reciprocal tariffs on various American goods, including a wide range of food and beverage products such as bourbon, orange juice and peanut butter.


Vietnam and Cambodia will be hit with 46% and 49% tariffs respectively. A 36% tariff will be implemented on imports from Japan, 36% on Thailand and 30% on South Africa.


A statement shared by the White House states that the US president believes the tariffs are ‘necessary to ensure fair trade’ and will ‘strengthen the international economic position of the US’.


Canada and Mexico will not be subject to additional tariffs, with non-UMSCA compliant goods from both countries continuing to see the 25% tariff rate put into place in March. According to the president, the intention of these tariffs on the two countries was to prevent drug trafficking and illegal migration into the US.

 

F&B impact


This recent escalation amid the ongoing trade war has further fuelled global concern about the significant impact on the economy, with European Commission president Urusula von der Leyen describing them as a “major blow to the world economy”.


The global food and beverage industry is likely to see further disruption to supply chains and increasing costs under Trump’s latest tariffs plan, expected to put further pressure on both businesses and consumers.


As a significant beverage export for the UK, the Scotch whisky industry is likely to see a big impact following the introduction of the tariffs. A spokesperson for the Scotch Whisky Association said the industry is “disappointed” following the news, adding: “We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”


William Wemyss, founder and chair of Scotch whisky producer Wemyss Family Spirits, said in a statement: “The reintroduction of a 10% tariff on UK exports to the US, including Scotch whisky, is a damaging setback for our industry”.


“As a small, family-owned Scotch whisky business, we rely on stable, tariff-free trade to grow, invest and bring our products to whisky lovers across the Atlantic. The US is our single largest export market, and demand remains strong, but tariffs inject real uncertainty, particularly for independent producers like us.”


Wemyss added that he hopes a case can be made for exemption, with Scotch whisky a protected product that can only be produced in Scotland.


“Given that unique status, we believe there’s a strong case for treating Scotch differently in future trade discussions, in a way that recognises its heritage and longstanding appeal to US consumers,” he continued. “We remain committed to building a resilient, flexible export strategy, but the reintroduction of tariffs adds complexity and makes it harder to plan with long-term confidence.”


Elsewhere, in the US, the National Restaurant Association has warned of the potential impacts on the foodservice industry, with CEO and president Michelle Korsmo emphasising that tariffs at this scale will create change and disruption for operators – including rising food and packaging costs and disruption to supply of ingredients.


She commented: “Restaurant operators rely on a stable supply of fresh ingredients year-round to provide the menu items their customers want and expect. Many restaurant operators source as many domestic ingredients as they can, but it’s simply not possible for US farmers and ranchers to produce the volumes needed to support consumer demand.”


“During this time of change, we’ll provide our members of all sizes with economic research to support their decision making and convene supply chain experts across the industry to share efforts for the best outcomes for restaurant consumers and the business viability of restaurants.”


The dairy industry is another F&B category that could face significant disruption of supply from key trading partners. Becky Vargas, senior vice president of trade and workforce policy at the International Dairy Foods Association said that the US dairy industry’s growth depends on strong trade relationships and access to essential ingredients and other goods.


“IDFA supports the Trump Administration’s efforts to hold trading partners accountable and expand market access for US dairy,” she said in a statement shared on behalf of the organisation. “However, broad and prolonged tariffs on our top trading partners and growing markets will risk undermining our investments, raising costs for American businesses and consumers, and creating uncertainty for American dairy farmers and rural communities.”


“We urge the administration to engage directly with dairy stakeholders and swiftly pursue resolutions with our trading partners that strengthen US dairy’s global competitiveness.”

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