National Restaurant Association Seeks Food Exemption as New Tariff Rates Take Effect

New tariff rates went into effect Thursday, Aug. 7, increasing the cost of importing materials and products from 66 countries and the European Union.

The North American Association of Food Equipment Manufacturers (NAFEM) has published a full list of the current tariff rates here. Some of the notable tariff rate changes are:

• 35 percent tariff on Canadian goods not covered by the United States-Mexico-Canada Agreement (USMCA), an increase from the previous level of 25 percent
• 50 percent tariff on semi-finished copper products from all countries
• 15 percent tariff on goods from countries in the European Union
• 50 percent tariff on goods from India
• 50 percent tariff on goods from Brazil
• 15 percent tariff on goods from Japan
• 20 percent tariff on goods from Vietnam
• 20 percent tariff on goods from Taiwan

Additionally, the 50 percent tariff on steel and aluminum goods is still in effect for most countries (25 percent for the United Kingdom and 200 percent for Russia).

The new rates coincide with the end of the 90-day pause on tariffs the Trump administration announced on July 7 to give countries time to negotiate new trade agreements with the United States. Since then, the Trump administration has announced eight trade agreements with the European Union, Indonesia, Japan, Pakistan, the Philippines, South Korea, the United Kingdom, and Vietnam. There is also a framework for a trade agreement in place with China; however, the deadline to announce a new deal or extend negotiations is Aug. 12. If an agreement is not reached by then, the United States could reinstate a 145 percent tariff on Chinese goods.

Finally, on July 31, President Donald Trump said he would enter into a 90-day negotiating period with Mexico, preventing another tariff increase on one of the United States’ largest trading partners for the time being.

The tariffs are expected to cause a wide range of price increases, including on foodservice equipment and food products. In anticipation of these cost increases, the National Restaurant Association is urging the Trump administration to continue seeking sensible trade agreements. “Operating a restaurant is becoming increasingly difficult due to economic and regulatory pressure and a nearly 5 percent increase in wholesale food costs since last year,” said Michelle Korsmo, president and CEO of the National Restaurant Association. “These new tariffs on food and beverage items will exacerbate the situation.”

She warned that many operators may have no choice but to increase menu prices, which could discourage Americans from dining out. “While addressing trade deficits is important, food and beverage products are not major contributors to these imbalances,” Korsmo continued. “We strongly advocate for exempting food and beverage items from tariff negotiations and ensuring USMCA-compliant goods remain exempt during ongoing talks with Mexico and Canada. These measures will help safeguard small businesses, preserve jobs and keep dining out affordable for families.”