How U.S. Exporters Can Maintain Their Sales Despite U.S. Tariffs

U.S. tariffs went into effect on about 90 countries last week, tempting those markets to retaliate against U.S. exports with tariffs of their own.  What are the future prospects for U.S. food and beverage exports?

Excellent.  Firstly, our major trading partners such as the European Union, Japan, Korea, Vietnam and others have pledged to not only open their markets to U.S. products but also invest in U.S. industries.  While the U.S. imposed a 35% tariff on goods from Canada, there is an exemption for products which comply withCUSMA (Canada-United States-Mexico Agreement) which covers about 94% of Canadian imports to the U.S.  Tariffs for Mexico have been suspended while negotiations continue.  High China tariffs have been paused for 90 days and therefore maintained at a manageable 30%.

While there are some countries facing punishing tariffs, such as 50% from Brazil and 39% from Switzerland, for the most part the majority of countries should maintain their current trade policies with the U.S.  Because U.S. products are known for high quality and innovation, consumers worldwide continue to demand them and are willing to pay more for them.  In the near term little will change and longer term foreign consumers will become accustomed to paying higher prices for unique U.S.-made products.  We remain bullish on U.S. exports of food and beverages to our major global trading partners.