US food sector seeks relief from Trump admin as tariffs threaten prices

The US food sector is pressing the Trump administration for relief as new tariffs on imports like seafood, fruits, and vegetables risk pushing up consumer prices

The American food industry is pressing for relief from the latest round of tariffs, warning that duties on key imports risk driving up consumer prices and squeezing restaurants and retailers. 

According to a report by The Financial Times, restaurant operators and retailers caution that tariffs on seasonal or non-substitutable goods would swiftly translate into higher menu prices and grocery bills. Analysts, cited in the report, noted that even modest increases in tariffs are designed to raise prices, and the scale of recent measures could make the impact highly visible to consumers.

 

Imports make up 1/5 of US food supply

Although most food consumed in the United States is produced domestically, around one-fifth is imported. For some categories, dependence is far greater. Seafood, fruits, and vegetables are especially vulnerable because US production cannot be expanded easily due to climate, environmental, or regulatory limits.

 

 

Five nations supply half of US seafood

Seafood imports highlight the scale of the challenge. Data from the US Department of Agriculture’s Economic Research Service shows that the country’s top five suppliers are Canada, Chile, India, Indonesia, and Vietnam. These exporters accounted for more than half of US seafood imports in 2024.

 

India alone exported nearly $2.3 billion worth of shrimp to the US in FY24, more than 90 per cent of its seafood exports to that market. The new 50 per cent tariff on Indian seafood, announced on August 27, has hit that trade.

 

India’s Union Minister for Fisheries, Animal Husbandry and Dairying, Rajiv Ranjan Singh, has urged exporters to seek alternative markets to weather the disruption.

 

Mexico, Canada key to US produce supply

Fresh produce is another sensitive category. In 2023, Mexico supplied 51 per cent of US fresh fruit imports, while Canada accounted for another 2 per cent. On the vegetable side, Mexico provided 69 per cent and Canada 20 per cent. For some crops, such as cucumbers, nearly 90 per cent of supply is imported, meaning any tariff shock quickly translates into higher supermarket prices.

 

Trade pact shields North America, others exposed

These tariff measures are being implemented unevenly. Under the USMCA trade pact, goods traded between the US, Mexico, and Canada are largely exempt from new duties if they meet origin rules. This spares much of the fruit and vegetable trade within North America.

 

Meanwhile, products from outside the bloc, including seafood from India, Chile, Indonesia and Vietnam, fall directly under the new tariff regime.

 

US tariffs on key food exporters

Mexico: 25 per cent tariff on most goods, with exemptions for USMCA trade.

Canada: 35 per cent duty, again with carve-outs for USMCA-compliant goods.

China: 30 per cent tariff, with threats of escalation to 145 per cent.

India: 50 per cent tariff as of August 27, doubled from 25 per cent, tied to its continued Russian oil purchases.

Indonesia: 15–19 per cent.

Vietnam and Chile: 10–41 per cent.

 

US food sector seeks relief

Although rising costs have fuelled frustration, industry associations are not pushing for a return to unrestricted free trade. Instead, they are seeking a targeted approach that shields categories the US cannot realistically produce, while leaving room for efforts to reshore production where feasible.