tradepolicy

The U.S. food sector has launched an intense lobbying campaign with one clear message for the White House: don’t impose tariffs on products that cannot be grown or produced domestically.
After President Donald Trump’s recent decision to hit dozens of countries with a new wave of tariffs, seafood companies, grocery chains, restaurants, and produce importers are scrambling to secure exemptions. According to the Financial Times, the latest measures have pushed America’s overall trade tax rate to its highest level in a decade.

The Argument: Tariffs on Imports Will Distort Food Prices
Industry representatives argue that for products such as cucumbers, shrimp, pineapples, and coffee, the U.S. is almost entirely dependent on imports. New tariffs would not only hit importers but also ripple across the entire food supply chain, from wholesalers to restaurants to consumers.
Rather than wage all-out war against Trump’s policy, lobbyists are focusing on targeted exemptions for the most vulnerable items.

Seafood Industry: 85% of Fish Is Imported
“We’d like an exemption for all seafood,” said Gavin Gibbons, chief strategist at the National Fisheries Institute. He noted that 85% of seafood consumed in the U.S. is imported, with domestic fishing restricted by federal catch limits. Expanding aquaculture is also unrealistic due to strict regulations.
In 2022, the U.S. recorded a $24 billion seafood trade deficit. Shrimp are particularly dependent on imports—90% come from abroad, with over one-third sourced from India, which Trump has now targeted with a 50% tariff in retaliation for its oil trade with Russia.

Restaurants and Retail Chains Warn of Price Hikes
The National Restaurant Association recently warned U.S. Trade Representative Jamieson Greer that menu prices could spike if tariffs are applied to fresh seasonal ingredients.
Large grocers are also alarmed. Andy Harig of the Food Industry Association—representing Walmart and Albertsons—explained that tariffs are designed to raise prices. In the case of cucumbers, the impact would be immediate: in 1990, only 35% of cucumbers were imported, but today that figure has surged to nearly 90%. Growing them year-round domestically would require massive greenhouse operations—an expensive undertaking that would only drive prices higher.

Possible Relief Through Trade Deals
Some trade agreements could provide partial solutions. A new deal with Indonesia includes provisions for natural resources unavailable in the U.S., potentially opening the door to exemptions for tropical fruits. Brazil has already negotiated exemptions for orange juice and Brazil nuts, while coffee has been partially excluded despite not being produced domestically.
Commerce Secretary Howard Lutnick recently suggested that coffee, mangoes, and pineapples may eventually be exempted, but emphasized that nothing is guaranteed.

Bottom Line
Food producers and retailers warn that Trump’s tariff policy risks driving up grocery and restaurant prices across the country. With many essential food products reliant on imports, industry groups are betting on carve-outs to shield consumers—and themselves—from the sharpest costs of the trade war.

#TRUMP , #Tariffs , #TradePolicy , #GlobalTrade , #worldnews

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