**Washington**: Major U.S. packaged food manufacturers, including Quaker Oats and Folgers coffee, have requested tariff exemptions for essential import ingredients. This move aims to mitigate rising costs amid ongoing inflation, as outlined in a letter to President Trump from the Consumer Brands Association.
Major packaged food manufacturers in the United States, including well-known brands such as Quaker Oats and Folgers coffee, have formally requested exemptions from tariffs imposed on several essential import ingredients. This request was articulated in a letter to President Donald J. Trump, which was reportedly seen by Reuters.
Sent on Monday by the Consumer Brands Association, a trade group representing a variety of consumer products companies, the letter identifies several ingredients that are either unavailable or insufficiently supplied by domestic sources. The products mentioned include cocoa, tropical fruit, spices, and specific types of steel used in producing specialty food and household goods.
“We believe targeted and carefully calibrated removal of these ingredients and inputs from tariffs is appropriate to best protect U.S. manufacturers and support (Trump’s) efforts to lower consumer inflation,” states the letter. This sentiment is reflective of a broader concern within the industry regarding the rising costs linked to new tariffs.
The letter emphasises the delicate timing for the packaged food and consumer product sector, which is grappling with the potential need to pass increased costs onto consumers. The sector has already experienced a decline in purchasing amid persistent double-digit inflation over recent years. Tom Madrecki, vice president of campaigns and special projects for the Consumer Brands Association, indicated that the appeal for tariff exemptions is intended to initiate a discussion with the Trump administration regarding the tariffs’ impact.
Colgate-Palmolive and Edgewell, among others, are also facing exposure to these tariffs. Colgate, which produces toothpaste in Mexico, is exploring strategies to mitigate tariff impacts. However, John Faucher, the company’s chief investor relations officer, acknowledged at an industry conference that eliminating the effects entirely may not be feasible. “There still will be an impact both from the initial tariffs, as well as in terms of what happens with any sort of retaliatory tariffs as we look at impact with Mexico or Canada,” he stated.
Manufacturers such as Edgewell, known for its Banana Boat sunscreen, are taking proactive steps to safeguard their operations ahead of anticipated tariffs, specifically by securing prices for chemical imports from Chinese suppliers. Procter & Gamble also indicated that it might need to increase prices in response to the looming trade tensions and the associated financial pressures.
As discussions regarding the potential tariffs continue, the Consumer Brands Association is advocating for a strategic approach that prioritises the protection and sustenance of U.S. manufacturers, thereby addressing the critical concern of consumer inflation.
Source: Noah Wire Services
Subscribe to Industry Updates
