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Trade Group Seeks Tariff Exemptions for Food and Beverage Manufacturers
The Consumer Brands Association, representing major food and beverage companies like PepsiCo and Conagra Brands, has requested targeted tariff exemptions for key ingredients imported by its members. In a letter dated March 10, the association urged the White House to consider the impact of tariffs on U.S. manufacturers and consumers.
Challenges Faced by Food Companies
While food companies strive to source ingredients locally, some products such as cocoa, coffee, spices, and tropical fruits are not readily available in the U.S. Additionally, inputs like tin mill steel have limited domestic supply, posing challenges for manufacturers.
Industry Concerns
The trade group is concerned about the financial impact of tariffs on its members and calls for a more nuanced approach to trade enforcement. Melissa Hockstad, CEO of the Consumer Brands Association, emphasized the need for targeted removal of ingredients from tariffs to support domestic manufacturers and mitigate consumer inflation.
Impact on Operations
Executives from companies like Campbell’s and Mondelēz have warned that tariffs are affecting their operations and could lead to price increases. Campbell’s CEO highlighted potential cost escalations in packaging, while Mondelēz’s CEO expressed concerns about higher manufacturing expenses for cookies and crackers.
President Trump’s recent announcement of potential tariffs on European alcoholic products adds to the uncertainty in the industry, with existing tariffs already impacting steel, aluminum, and other goods from the EU, Canada, and Mexico.