April 2025 Tariff Updates: What Food Manufacturers Need to Know

UPDATE: On April 9, President Trump said he would pause most new global tariffs for 90 days. This pause does not include China, which will be subject to an increase to 125 percent tariffs. SFA will be watching this topic closely. We recommend watching https://www.afslaw.com/perspectives/customs-import-compliance-blog/trump-tariffs-20-the-tariff-tracker(Opens in a new window)

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With the latest tariff adjustments taking effect in April 2025, food manufacturers need to stay informed about the changes and their impact on costs, supply chains, and pricing strategies.  

In a webinar hosted by SFA on April 3, 2025, attorney Leah Scarpelli, Partner at ArentFox Schiff, broke down the key updates following the Trump administration’s April 2 announcement of new tariffs and rates. Scarpelli also discussed the effect of these policy changes on the food industry and on food makers, and explored strategies and tactics businesses can use to mitigate risks. Read on for highlights from the April 3 webinar, which is also available to watch in full at no cost.

Why Tariffs Matter for Food Manufacturers 

Tariffs influence the cost of imported ingredients, packaging materials, and equipment essential for food production. Manufacturers relying on global supply chains may see cost increases that could affect pricing and profitability. 

Overview of the April 2025 Tariff Changes 

• Increased Tariffs on Certain Imported Ingredients – Agricultural imports and food-related products will see higher duties, making them more expensive for food producers. 
• Lower Tariffs on Domestic Alternatives – In an effort to boost local sourcing, tariffs on certain U.S.-produced raw materials are being reduced. 
• Regional Trade Impacts – Changes in tariffs for imports from China, Canada, Mexico, and the EU will alter sourcing strategies for many food companies. 

How Food Manufacturers Can Reduce Tariff Costs 

To navigate the changing landscape, food businesses should consider these strategies: 

• Reassess Supply Chains 
  • Explore domestic ingredient suppliers benefiting from tariff reductions. 
• Diversify sourcing to reduce reliance on high-tariff regions. 
  • Modify product formulations to use lower-tariff alternatives where possible. 
• Use Correct HTS Classification 
  • Ensure imported ingredients are classified correctly under the Harmonized Tariff Schedule (HTS) to avoid unnecessary fees. 
• Apply for Tariff Exclusions 
  • Some exemptions may be available for businesses that prove no viable domestic alternatives exist. 

Pricing and Supply Chain Adjustments 

As tariffs increase costs, food manufacturers must decide whether to absorb them, pass them to consumers, or renegotiate contracts with distributors and retailers. 

• Negotiations – Determine who absorbs additional costs – may already be stipulated in your contract.
• Consumer Price Sensitivity – Assess how price increases may impact demand.
• Operational Efficiency – Look for internal cost-saving measures to offset tariff-related expenses. 

Next Steps for Food Manufacturers 

• Assess which tariff changes apply to your business.
• Review ingredient sourcing and explore domestic alternatives.
• Optimize product formulations to minimize tariff exposure.
• Apply for tariff exclusions if applicable.
• Develop a pricing strategy in response to cost increases.

Staying ahead of these changes will help food manufacturers maintain profitability while adapting to new trade regulations.


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