Trump’s tariff announcement, 30-day delay causes uncertainty in restaurant sector, could impact pricing

USA – President Trump caused concern in the restaurant and food service sector by ordering a 10% duty on Chinese goods and 25% tariffs on imports from Canada and Mexico, though enforcement was paused for 30 days, potentially affecting pricing.

On February 2, President Donald Trump signed three executive orders imposing tariffs on the U.S.’s top three trading partners, as announced by the White House on social media platform X.

One of the orders imposes a 25% tariff on goods from Mexico, another enacts a 25% tariff on goods from Canada, along with a 10% tariff on Canadian energy products.

A third order establishes an additional 10% tariff on imports from China, as reported by Trump on Truth Social.

Meanwhile, President Trump and Canadian Prime Minister Justin Trudeau agreed to delay the enforcement of tariffs between the U.S. and Canada for one month.

This decision followed a discussion between the two leaders, with Trudeau describing it as “a good call with President Trump.”

In a post on X, Trudeau mentioned that Canada would coordinate with the U.S. to strengthen border security efforts against the flow of fentanyl, a sentiment echoed by Trump on Truth Social.

Michelle Korsmo, president and CEO of the National Restaurant Association, addressed concerns among small business restaurant operators, stating that they are evaluating how these tariffs might affect their operations.

She explained that restaurant owners are considering how to manage pricing pressures, secure key ingredients, and potentially adjust menus while continuing to serve their communities.

Korsmo noted that the association would continue working with the Trump administration to ensure that operators’ concerns are understood.

Korsmo added that the organization is closely monitoring the potential effects of tariffs on food and beverage pricing, domestic sourcing, and menu adaptations.

She emphasized that the National Restaurant Association is paying close attention as the Trump administration reassesses trade policies.

The Trump administration justified the tariffs as a measure to curb the flow of fentanyl into the U.S., with the White House stating that the tariffs were necessary to hold China, Mexico, and Canada accountable for their promises to stop the drug influx.

These tariff actions had been anticipated by Trump for months, with the president first indicating in November that he would impose them via executive order upon taking office.

Though he initially issued a memorandum on inauguration day to review trade policies, he later confirmed that the tariffs would move forward before the review deadline, with implementation expected by February 1, as reiterated by White House Press Secretary Karoline Leavitt on January 31.

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