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National Restaurant Association warns new Trump tariffs will hike food costs

Trump declared a universal baseline tariff of 10% from 5 April 2025, with higher rates for certain countries from 9 April.

aranyamondal April 04 2025

The US National Restaurant Association has said that the new tariffs implemented by President Donald Trump on 2 April 2025 will create change and disruption that restaurant operators will have to navigate to keep their restaurants open.

Trump has declared a universal baseline tariff of 10% effective from 5 April, with higher rates for certain countries from 9 April.

Their imposition is a response to what he describes as unfair trade barriers placed on the US by certain trading partners.

China, Japan, the European Union and Vietnam are among the countries and regions facing elevated duties.

These targeted tariffs are calculated to be half of the total trade barriers, including tariffs and value-added taxes, that these countries impose on the US.

For instance, China will incur a 34% tariff, reflecting the 67% charge President Trump claims the country levies against the US through tariffs and other trade measures.

Similarly, Japan will face a 24% tariff, the EU 20% and Vietnam a significant 46%.

The rates will only apply to the non-US content of finished goods if at least 20% of the product's value was manufactured in the US, according to the executive order signed by Trump to enact the new duties.

National Restaurant Association president and CEO Michelle Korsmo stated: “The biggest concerns for restaurant operators — from community restaurants to national brands — are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers.

"Restaurant operators know consumers are very sensitive to costs and have kept menu price increases to 30%, while their food costs have gone up 40% in the last five years.

“Restaurant operators rely on a stable supply of fresh ingredients year-round to provide the menu items their customers want and expect. Many restaurant operators source as many domestic ingredients as they can, but it’s simply not possible for US farmers and ranchers to produce the volumes needed to support consumer demand.”

The National Restaurant Association will share the real-life challenges the proposed changes present for restaurant operators and intends to ask the White House to exclude food and beverages from the tariffs.

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