A dash of this and a pinch of that could cost more in American kitchens with new tariffs on goods from India.
Many spices used by home chefs, restaurants and large manufacturers are imported from India, and the 50 percent tariffs on the country imposed by President Trump could drive costs higher, a trade association warned on Wednesday.
Last year, the United States imported more than $410 million in spices from India, according to the U.S. Department of Agriculture.
Several essential spices, including cinnamon, pepper, nutmeg and cloves, require tropical climates and, therefore, cannot be grown in the United States on a large enough scale to meet demand, Laura Shumow, executive director of the American Spice Trade Association, said in a statement.
The spice industry is one of many sectors that are tallying up the potential costs of Mr. Trump’s trade wars with various partners, warning that the fallout could hit either profits at American companies or consumers’ wallets.
In late June, executives at McCormick warned that Mr. Trump’s tariff policy could cost the spice company $90 million a year.
“Tariffs on these products — including additional new tariffs announced this week — do not incentivize U.S. production or create American jobs,” Ms. Shumow said. “Instead, they place an undue financial burden on U.S. food manufacturers, restaurants and, ultimately, American consumers.”
The spice association noted that in the framework of a trade deal with Indonesia, the Trump administration had created the potential for exemptions or reductions in tariffs for commodities not naturally available or produced in the United States. The trade group said it hoped a similar framework could be put into agreements with other nations.
“We firmly believe that smart, targeted trade policies can support the U.S. spice industry and other American businesses,” Ms. Shumow said, “while helping to keep grocery costs down for families.”
Julie Creswell is a business reporter covering the food industry for The Times, writing about all aspects of food, including farming, food inflation, supply-chain disruptions and climate change.
The post Where New India Tariffs Could Hit? Your Kitchen Cabinet. appeared first on New York Times.
