US trade tariffs could hit entire food and drink sector including confectionery
One of the most urgent global trade topics dominating headlines these past few weeks has been the prospect of US tariffs being placed on global goods from around the world – including the possibility of food and drink segments such as chocolate, snacks and bakery.
That they were in the pipeline will come as no surprise, with Donald Trump declaring just before the presidential election that ‘tariff was the most beautiful word in the dictionary’ = shoppers facing inflated grocery prices in the US, as well as looming job cuts from firms forced into altering their supply chain decisions, may well beg to differ with him.
Just today, it was confirmed that the US would press ahead with the much-trailed 25% import taxes – which the US leader does not appear to accept means that US citizens will pay more for their goods. This will undoubtedly will be the clear scenario as American businesses will be hit with additional costs that they will in turn be forced to pass on to consumers. It’s a simple law of economics that shouldn’t come as any surprise to the incoming American government from the last trade war it started in its previous term in office.
Notably, China has been quick to respond in stating that it would put in place targeted tariffs levelled against a select number of businesses that would have maximum impact on the American government’s supporters.
Similarly, Canada has stated it intends to respond with its own tariffs in exchange for those heading in its direction, with its anticipated new leader, former Bank of England governor Mark Carney stating that it would both respond on the US taxation, nor would the country bow to political White House pressure in becoming ‘the 51st state of America.”
As for the UK? Well it seems Sir Keir Starmer, fresh from a visit to the Oval Office, is holding off on putting up its own tariffs on British goods heading across the Atlantic, but for for how long he can afford to take that position is hard to say. The prospect of a trade deal to revive the ‘special relationship’ may well be uppermost in his mind, but one thing is surely certain right now, is that very little seems certain. This has led to widespread investor concerns Stateside, with talk of a potential recession looming this year in the wake of widespread government cuts.
While the confectionery sector itself in actual fact fared relatively resiliently last year, registering $54 billion in sales, consumer confidence there, as in many places around the world is seemingly a pretty fragile thing right now.
Neill Barston, editor, Confectionery Production
