Restaurants Will Likely Have to Wait For Tariff Exemptions

The Trump Administration has altered its tariff policy already, suspending the 25% duty on automobiles imported from Mexico and Canada for a month. But don’t expect an about-face that quickly on foods shipped into the U.S. from the neighboring nations, as the domestic foodservice industry has requested from the White House.

Securing an exemption for restaurant supplies ranging from beer to beef will likely require following a process set by the administration to handle a slew of requests from affected parties, according to Aaron Frazier, vice president of public policy for the National Restaurant Association. But there’s no process yet in place, he explained in an address Tuesday at the Chain Operators EXchange (COEX).

“We’re all about to figure out that process that will allow us to get that exclusion,” Frazier explained. 

His presentation left little doubt that the tariffs would be a wallop to U.S. restaurants, onsite foodservice operations, c-stores and virtually every other component of the domestic food-away-from-home industry. Research shows the tariffs will likely cost an American household about $1,200 per year in higher prices, cutting into consumers’ disposable income as it squeezes the margins of businesses like restaurants, Frazier said.  

He noted that American food prices are already up about 35% from where they were five years ago.  
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Frazier also warned attendees that tariffs could be placed on other food and beverage exporting nations, including members of the European Common Market, as early as next month. 
“There are so many ways a trade war could hurt us,” he lamented.