New Tariffs Announced

Recently, President Trump issued an Executive Order imposing new tariff rates on goods from over 67 countries. The EO includes charts which show the new tariff rates of all countries. Countries not listed in Annex I will continue to face a baseline 10% tariff. The new tariffs will take effect on August 7, 2025. Goods already in transit before this time are exempt from the new rates. There is also a transshipment penalty, meaning that goods determined to be transshipped to evade tariffs will face an additional 40% tariff, along with other penalties.

Restaurant Impact and Engagement
The National Restaurant Association issued a press release, which emphasizes that while addressing trade deficits is a valid objective, food and beverage products are not major contributors and should be excluded from tariff negotiations. It urges the administration to exempt these items to protect small businesses, preserve jobs, and keep dining affordable for families. It also highlights that these tariffs are expected to further disrupt access to essential ingredients, increase costs, and place additional pressure on both operators and consumers.

Last week, the National Restaurant Association also sent a letter to the United States Trade Representative (USTR) expressing concerns about increased tariffs on our major trading partners and urging the administration to exempt food and beverage products from tariffs negotiations.

NEW TARIFF RATES
Canada & Mexico

• The Canadian tariff rate has increased from 25% to 35% starting August 1 (see Fact Sheet). Importantly, USMCA-compliant goods will remain exempt from the tariffs.
  
• Mexico has an additional 90-day pause as negotiations continue. USMCA compliant goods will remain exempt during this time. All other goods will remain under a 25% tariff.

European Union

• The US and EU reached a framework deal which will result in a 15% tariff starting on Aug. 1. European food, wine and spirits are not exempt, though we are advocating for an exemption of these products.

Brazil

• A 50% tariff on Brazilian goods will be effective Aug. 6 based on a new Executive Order. There were some exemptions for items such as aircraft and energy. However, beef and coffee were not included in the exemptions. The EO provides a "goods on the water" exception if an exporter can ship goods before August 6, they can avoid the 40% tariff if they arrive before October 5.

China

• US and Chinese officials recently agreed to seek an extension of their 90-day tariff truce. However, it will not be final until President Trump signs off on the plan. Deadline for that is August 12.

Other Key Countries

• United Kingdom -10% - trade deal
• Vietnam ­- 20% - trade deal
• Indonesia - 19% - trade deal
• South Korea – 15% - trade deal
• Japan – 15% - trade deal
• Philippines – 19% - trade deal
• India - 25%
• Thailand – 19%
• Taiwan – 20%
• Cambodia – 19%
• Costa Rica – 15%
• Ecuador – 15%
• Venezuela – 15%
• Nicaragua – 18%
• Myanmar – 40%
• Laos: 40%
• Iraq: 35%
• Switzerland: 39%
• Norway: 15%
• Syria: 41%

 
See the Executive Order for other countries. 
 
Questions? Contact us!