The Consumer Brands Association, a trade group representing large food and beverage manufacturers, has recently reached out to the White House administration requesting “targeted” tariff exemptions for essential ingredients and other inputs imported by its members. Companies such as PepsiCo, Conagra Brands, and Mondelēz International are among those seeking relief from the financial burden imposed by tariffs on key ingredients.
In a letter dated March 10, the Consumer Brands Association emphasized the importance of ensuring that tariffs do not have unintended consequences on U.S. manufacturers and consumers. While these companies strive to source ingredients locally, some products like cocoa, coffee, spices, and tropical fruits are not readily available in the U.S. Additionally, certain inputs such as tin mill steel face a limited domestic supply.
As the tariff war continues to unfold, the trade group is hopeful that the White House administration will consider the impact on its members and make adjustments to the current trade policies. Melissa Hockstad, president and CEO of the Consumer Brands Association, expressed the need for a more tailored approach to tariff exemptions that would protect U.S. manufacturers and support efforts to lower consumer inflation.
Executives from major food companies have already voiced concerns about the potential impact of tariffs on their operations. The CEO of Campbell’s Company, Mick Beekhuizen, warned that tariffs could raise packaging costs and negatively affect their soup brand. Similarly, the CEO of Mondelēz, Dirk Van de Put, highlighted the potential increase in manufacturing costs for cookies and crackers due to tariffs.
President Trump’s recent threat to impose 200% tariffs on wine, Champagne, and other alcoholic products from Europe further adds to the uncertainty surrounding trade policies. The administration has already implemented tariffs on steel and aluminum products from the E.U., Canada, and Mexico, leading to widespread concerns among manufacturers about potential price increases and reduced consumer spending.
Overall, the Consumer Brands Association and its members are advocating for a more nuanced approach to tariffs that takes into account the complexities of global supply chains and the potential impact on domestic manufacturing and consumer prices. By seeking targeted exemptions for key ingredients and inputs, these companies hope to mitigate the financial strain caused by current trade policies and ensure the continued competitiveness of the U.S. food and beverage industry.
