President Donald J. Trump has announced new tariffs that are expected to affect the cost of food and beverages in the United States. These tariffs could lead to higher prices for restaurant staples such as coffee and hamburgers, as well as other essential menu ingredients.
Michelle Korsmo, President & CEO of the National Restaurant Association, commented on the potential impact these changes may have on both restaurant operators and consumers.
“Operating a restaurant is becoming increasingly difficult due to economic and regulatory pressure and a nearly 5% increase in wholesale food costs since last year. These new tariffs on food and beverage items will exacerbate the situation.
"Although we are still evaluating the full impact of these announcements, it is evident that these tariffs will increase the cost to access many important menu products.
"With restaurants operating on very tight margins, many operators may have no choice but to increase menu prices, something they are reluctant to do, because we know Americans may have to make the choice to dine out less frequently if prices go up. Fewer people dining out jeopardizes an industry that supports millions of jobs and local economies.
"We ask the Trump Administration to continue with sensible trade agreements. While addressing trade deficits is important, food and beverage products are not major contributors to these imbalances. We strongly advocate for exempting food and beverage items from tariff negotiations, and ensuring USMCA-compliant goods remain exempt during ongoing talks with Mexico and Canada. These measures will help safeguard small businesses, preserve jobs, and keep dining out affordable for families.
"While restaurants are resilient, we require policies that enable us to continue serving our communities effectively."
The National Restaurant Association recently sent a letter dated July 29 to the U.S. Trade Representative urging that food and beverage products be excluded from tariff considerations.
