National Restaurant Association Reacts to New Food and Beverage Tariffs

WASHINGTON — President Donald J. Trump recently announced several new tariffs that could impact the cost of food and beverages. These changes could increase the prices for popular restaurant items like coffee and hamburgers and raise prices for many other needed menu ingredients, according to the National Restaurant Association.

National Restaurant Association President and CEO Michelle Korsmo released the following statement about how these changes will impact 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."

Read the July 29 letter from the Association to the U.S. Trade Representative urging food and beverage to be exempted from tariffs here.

What’s in the tariff update?

The administration’s new executive order imposes varying tariff rates on goods from over 67 countries. Here's a summary of what’s changing:

• Canada: Tariff rate increased from 25% to 35%, though USMCA-compliant goods remain exempt.
• Mexico: 90-day pause on new tariffs as negotiations continue. USMCA-compliant goods still exempt; others remain at 25%.
• European Union: A new 15% tariff went into effect Aug. 1. European food, wine, and spirits are not exempt—a concern for many U.S. operators.
• Brazil: A 50% tariff begins Aug. 6. While aircraft and energy are exempt, coffee and beef are not.
• China: A new 90-day truce is pending final sign-off by President Trump. Deadline: Aug. 12.