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The global Spice market is feeling the heat of Donald Trump’s tariff policy.
50%of tariffs will be implemented on August 1 in more than 12 countries that do not have a quantum trade agreement. This occurs after the US imposes a 10%basic tariff earlier this year, increasing the cost of food manufacturers and materials suppliers.
According to the American Spice Trade Association, the United States imported more than $ 2 billion in spices in more than 50 countries in 2024. Many of them are “flavored ingredients used in hundreds of millions of pounds produced by US food manufacturers,” the association said in a trump administration.
It affects the tariffs on chocolate and coffee, but the headline is dominant, but as the import business increases, dozens of spices and seasonings can face higher prices. Most of these products cannot be grown commercially in the United States. In other words, domestic production does not expand and can be delivered to consumers.
For example, peppers need a hot and humid environment found in places like India, Vietnam and Brazil. Vanilla is mainly grown in Madagascar and requires certain temperature range and hand moisture skills. Cinnamon is harvested from Sri Lanka and the bark of Southeast Asia. We cannot survive in winter.
The higher the cost threatens the price increase of consumers when food inflation withdraws consumer spending. In addition, companies were able to switch to artificial fragrance alternatives so that the food industry weakened the promotion of the Trump administration to rely on natural ingredients.
SPICE MAKER MCCORMK said that tariffs can take $ 90 million annually to the company, but most of them will be offset by changes in sourcing and other measures. But small spices manufacturers are less likely to absorb costs.
SPICE HOUSE, a midwestern -based company that sells premium spices, operates an Illinois manufacturing facility that grinds and mixes spices. ALLYSON LEWIS’s CEO Allyson Lewis said that tariffs created uncertainty and said, “It is more difficult to maintain consistent prices and availability.”
“We are very proud of the fact that we manufacture spices in Korea and operate in -house manufacturing plants and warehouses that make more than 100 people throughout the year.”
ASTA mentioned more than 12 spices that were considered to be a priority list for customs relief, for the letter to the Congress, especially in the US, especially in the United States. This includes:
- vanilla
- cinnamon
- cloves
- Cadamon
- coriander
- anise
- nut
- ginger
- saffron
- Deal
- basil
- sage
- salt
- pepper
- Mint leaf
- thyme
- Bay leaf
