Tariffs Add a New Shock to Food Supply Chains
Published On Mar 5, 2025, 5:04 AM
The article discusses the recent implementation of tariffs by the Trump administration, imposing a 25% tariff on imports from Canada and Mexico and a 20% tariff on goods from China. Companies like Sysco and Westrock Coffee are assessing the impact on their supply chains, especially concerning essential products like avocados and coffee, that heavily depend on imports from these regions. The tariffs threaten to complicate supply chain management, which had already been stressed by the COVID-19 pandemic, making sourcing more challenging and increasing inventory costs.
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The tariffs could negatively impact companies reliant on imports from Canada, Mexico, and China, particularly in the food sector. Supply chain disruptions may lead to increased prices for goods such as avocados and coffee. Companies like Sysco that are adapting by diversifying suppliers may mitigate some risks, but increased costs could pressure margins.
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