US National Restaurant Association warns tariffs will increase costs, disrupt operations

USA – The US National Restaurant Association has warned that the new tariffs implemented by President Donald Trump on 2 April 2025 will significantly increase production costs for restaurants.

The National Restaurant Association has raised concerns over the potential fallout from newly imposed tariffs announced by former President Donald Trump, warning they could significantly disrupt operations across the foodservice sector.

The tariffs, which take effect in phases starting 5 April, establish a 10% universal baseline rate, with elevated duties applied to select countries from 9 April.

Framed as a countermeasure to what Trump describes as “unfair trade barriers” targeting American exports, the tariffs are specifically designed to mirror — at half value — the total trade barriers imposed by certain countries on the US, including both tariffs and value-added taxes.

Key trade partners facing higher rates include China, Japan, the European Union, and Vietnam.

According to the executive order, goods from China will incur a 34% tariff, based on Trump’s claim that Chinese trade policies effectively charge US exports 67%.

Japan will see a 24% tariff, the EU 20%, and Vietnam the highest at 46%. Notably, these tariffs apply only to the non-US content of finished goods, provided at least 20% of a product’s value is domestically manufactured.

Michelle Korsmo, president and CEO of the National Restaurant Association, stressed the ramifications for the foodservice industry.

“The biggest concerns for restaurant operators — from community restaurants to national brands — are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers,” she said.

Korsmo added that operators have been absorbing increased costs for years, with menu prices rising just 30% compared to a 40% increase in food costs over the past five years.

“Many restaurant operators source as many domestic ingredients as they can, but it’s simply not possible for US farmers and ranchers to produce the volumes needed to support consumer demand year-round,” she noted.

The association plans to present the real-world impact of these tariffs to the White House and is urging an exemption for food and beverage products, arguing that such measures are vital to maintain affordability and stability for both operators and consumers in a highly price-sensitive industry.

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