Just this week, the trade war between the United States and China kicked up a notch after China announced tariffs on an additional $60 billion in goods in response to the Trump Administration imposing new tariffs on $200 billion in goods. The food and beverage industry — and their suppliers — have been caught in the crossfire since the beginning, when the Trump Administration announced initial tariffs on steel and aluminum.
The results of a recent survey from the Food Processing Suppliers Association shows just how much the changing trade landscape is impacting food processing suppliers and their customers.
The negative impacts of domestic and foreign tariffs outweigh the positives.
- 2:1 — the ratio of respondents who say U.S. aluminum import tariffs had a negative impact on their business versus those saying it had a positive impact.
- 3:1 — the ratio of respondents who say U.S. steel import tariffs had a negative impact on their business versus those who said it had a positive impact.
- 4:1 — the ratio of respondents who say recent tariffs imposed by other countries had a negative impact on their business versus those who said it had a positive impact.
Tariffs are hiking prices, but not reducing sales.
- More than 30% — the percentage of respondents who say their prices have increased since the implementation of other countries’ tariffs over the last year.
- More than 50% — the percentage of respondents who say their prices have increased since the implementation of 2018 U.S. tariffs.
- More than 70% — the percentage of respondents who say tariffs have not reduced equipment or product sales.
Customers are wary of new tariffs.
- 69% — the percentage of respondents who reported customers are concerned about tariffs.
- 38% — the percentage of respondents who reported a slowdown in capital expenditures from customers as a result of the uncertainty about tariffs.
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Have new tariffs impacted your company? Email us at press@foodindustryexecutive.com to tell us your story.
