Food & Climate
US President Donald Trump raises concerns among food producers over tariffs at home and abroad, especially in Europe.
Although Trump implemented a batch of tariffs today, he announced that he is about to implement another batch of tariffs on agricultural and food imports.
“To the Great Farmers of the United States: Get ready to start making a lot of agricultural products to be sold INSIDE of the United States,” Trump wrote on Truth Social on Monday afternoon. “Tariffs will go on external product on Apr. 2. Have fun!”.
Trump’s new 25% tariffs on imports from Mexico and Canada took effect, along with a doubling of duties on Chinese goods to 20%, sparking trade wars.
The tariff actions, which could upend nearly $2.2 trillion in annual U.S. trade with its top three trading partners, went live at 12:01 a.m. (0501 GMT), according to a report seen by “Food & Climate” platform.
China responded immediately, announcing additional tariffs of 10%-15% on certain U.S. imports from March 10, according to “Reuters”.
Food producers in EU
In Europe, food producers are fretting over potential tariffs, as Trump has repeatedly slammed the agricultural trade imbalance between the EU and the US.
Italian farmers’ association Coldiretti warned on Tuesday that tariffs on Italian food products from pasta to cheese could fuel the US market for counterfeit Made-in-Italy goods. “The concern is that a 25% tariff on Italian food would raise prices for American consumers, pushing them toward cheaper goods, starting with the so-called Italian ‘fake’ alternatives,” Coldiretti stated, hinting to goods produced in Wisconsin, California and New York.
The association added that, during the first Trump administration, Italian agri-food exports to the US like fruit, cheese, meat, jams, wine and spirits declined in value.
Spirits Europe told Euractiv that they had called on the EU and the US on Tuesday to work together to maintain tariff-free transatlantic spirits trade.
“US is a critical market – more than a quarter of our exports go to the US,” the secretary general of the EU wine industry association Ignacio Sanchez Recarte told Euractiv. “We are obviously very concerned about the potential imposition of tariffs and the negative effect they would have on a sector that is not going through its best moments”.
Rising inflation
With U.S. tariffs on Mexico and Canada and a doubling of those on China set to take effect, food producers will struggle to keep their product levels stable amid rising inflation.
American consumers are already grappling with inflation and rising ingredient costs—from the impact of avian flu on the egg supply to the doubling of international cocoa and coffee prices due to extreme weather. And according to experts, President Donald Trump’s tariffs — 25% on imports from Mexico and Canada, and an additional 10% on goods from China — could significantly impact U.S. food prices, adding yet another layer of financial strain.
The administration hasn’t provided much clarity on how long the tariffs will remain in effect, but big food producers are bracing for what’s to come, with ingredients like Canadian rapeseed oil and seafood facing steep price hikes. As these companies decide whether to absorb or pass on the added costs, American shoppers will inevitably feel the impact.
For many food companies, the looming tariffs are a hurdle—but one for which they’ve been preparing. As reported by Food Dive, Sean Connolly, CEO of Conagra Brands, which makes products like Slim Jim and Healthy Choice, said at the Consumer Analyst Group of New York’s annual conference that there are still plenty of questions, but “not a lot of answers.”
“But,” as Connolly put it, “As managers of the business, we are always contingency planning for an array of possible outcomes to navigate any curveballs that come our way. This is no different.”
While some beverage manufacturers were exempt from tariff penalties during Trump’s first term, President Trump has made it clear that tariffs imposed during his second term will be enforced “without exceptions or exemptions.” This means companies like Coca-Cola—whose CEO, James Quincey, noted that they import aluminum for cans from Canada—are scrambling to find ways to offset potential price hikes.