U.S. Food Sector Seeks Relief as New Tariffs Risk Consumer Prices

130

The U.S. food industry is urgently appealing to the Trump administration for exemptions from recently imposed tariffs on imports of seafood, fruits, and vegetables—given that these items are not easily produced domestically. The concern is that such tariffs will drive up both grocery and restaurant prices.

Imports account for nearly one‑fifth of the U.S. food supply, but for certain staples like seafood and fresh produce, reliance is far greater. The U.S. Department of Agriculture notes that the top five seafood suppliers—Canada, Chile, India, Indonesia, and Vietnam—contributed over 50% of the country’s seafood imports in 2024. India alone exported close to $2.3 billion worth of shrimp, over 90% of its seafood export value to the U.S.; those imports now face a steep 50% tariff imposed on August 27.

Fresh produce is equally vulnerable. Mexico supplies 51% of U.S. fruits and 69% of its vegetables, while Canada provides an additional 20%. With such high import dependence, any tariff shock could reverberate through supermarkets and restaurants. Thankfully, food traded under the US–Mexico–Canada Agreement (USMCA) enjoys exemptions—offering some relief for goods sourced from within North America.

In response, industry associations are urging a more measured approach: instead of wholesale tariff rollback, they propose targeted relief for categories that are not feasible to domestically source. Their goal is to prevent abrupt price hikes while still enabling domestic resiliency where appropriate.