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Daily Newsletter

04 August 2025

Daily Newsletter

04 August 2025

NRA raises concerns over new tariffs on food and beverages

Tariff rises could lead to increased costs for staple items such as coffee and hamburgers.

Umesh Ellichipuram August 04 2025

The US National Restaurant Association (NRA) has issued a statement regarding recently announced tariffs on food and beverage imports by US President Donald Trump.

The association noted that these tariffs could lead to increased costs for staple items such as coffee and hamburgers.

NRA president and CEO Michelle Korsmo stated: “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.

“The 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 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.”

Rising wholesale food prices and already tight profit margins may compel restaurants to raise menu prices, potentially reducing customer traffic and jeopardising jobs within the industry.

The trade group is urging the Trump administration to consider exempting food and beverages from the new tariffs.

Korsmo added: “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 [United States Mexico Canada agreement]-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.”

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