The Impact of Tariffs on the Global Spice Market
President Donald Trump’s tariff policy is sending shockwaves through the global spice market, with tariffs as high as 50% set to take effect on Aug. 1 for countries without bilateral trade agreements. This adds to the 10% base tariffs imposed earlier in the year, raising costs for food manufacturers and ingredients suppliers.
In 2024, the U.S. imported over $2 billion worth of spices from more than 50 countries, crucial for flavoring the “hundreds of billions of pounds of food produced by American food manufacturers,” as noted by the American Spice Trade Association in a March letter to the Trump administration.
While the focus has been on chocolate and coffee, many other spices and seasonings are facing price hikes due to increasing import duties. Products like black pepper, vanilla, and cinnamon require specific growing conditions found in countries like India, Madagascar, and Sri Lanka, making domestic production impractical.
These higher costs threaten to raise prices for consumers and may lead companies to turn to artificial flavoring, contrary to the push for natural ingredients. Spice maker McCormick estimates tariffs could cost up to $90 million annually, impacting smaller businesses more severely.
The Spice House, a Midwest-based company, faces uncertainty due to tariffs, making it challenging to maintain consistent pricing and availability. CEO Allyson Lewis expressed concerns about the risk tariffs pose to their small business.
Seeking relief, the American Spice Trade Association has requested tariff exemptions for spices that cannot be grown commercially in the U.S. They have identified a priority list of over a dozen spices, including vanilla, cinnamon, cloves, and ginger, among others.
- Vanilla
- Cinnamon
- Cloves
- Cardamon
- Coriander
- Anise
- Nutmeg
- Ginger
- Saffron
- Dill
- Basil
- Sage
- Salt
- Black Pepper
- Mint leaves
- Thyme
- Bay leaves