Most Tariffs on Food, Beverages Under USMCA to Be Delayed

As we’ve seen, the tariff issue has been fluid with frequent policy changes. Here’s an update with the latest on tariffs from the National Restaurant Association
 
President Donald Trump temporarily delayed a 25% tariff for Canadian and Mexican imports that are covered under the US - Mexico - Canada Agreement (USMCA). Under the White House fact sheet, there are no current tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference.
 
Under USMCA, most agricultural products, food, and alcohol generally have zero tariffs but it is advisable to check with your supply chain on specific products. This is the second temporary tariff delay on Canadian and Mexican issued by President Trump since taking office on January 20.

In February, the Association requested a full exemption for food and beverage imports, citing an estimated $12.1 billion in increased costs if a 25% tariff on Canadian and Mexican imports was in place. Analysis indicates that imported food and beverage products range from produce, meat, cooking oil, potatoes and alcohol.
 
Separate from the North America tariff discussion, President Trump plans to advance “reciprocal tariffs” April 2 on foreign nations that have import taxes on U.S. goods. There may be additional pressure on products covered under USMCA leading up to the April 2 deadline.
 
The National Restaurant Association is monitoring the situation and actively lobbying on this issue to help mitigate negative effects on the restaurant industry. Look to this alert section for future updates.
 
Questions? Contact us!
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