The US is bracing for the impact of tariffs on food supplies, as President Trump’s administration has imposed new levies on imports from Canada and Mexico. The move is expected to affect industries ranging from coffee to avocados, with companies scrambling to adapt their supply chains.
Sysco, a major food distributor, has diversified its suppliers in recent years due to the COVID-19 pandemic. However, avocados remain a sensitive spot, as most are sourced from Mexico. “The majority of avocados eaten in the US come from Mexico,” said Victoria Gutierrez, chief merchandising officer for Sysco. “Can we meet the full demand for avocados? No.”
With tariffs now in effect, companies like Westrock Coffee and Chipotle are facing significant challenges. The coffee manufacturer is exploring alternative suppliers in Central America, while Chipotle plans to absorb the costs of increased tariffs on its avocado imports.
Target has also announced plans to raise prices on fruits and vegetables imported from Mexico, citing the need to offset rising costs. Analysts warn that companies may struggle to pass on these costs to consumers, particularly given inflationary pressures.
Mondelez International’s factory in Salinas, Mexico, produces iconic brands like Oreo and Chips Ahoy! The company faces significant challenges repatriating production to the US without incurring higher costs.
As the food industry navigates this new landscape, companies are adapting their supply chains to cope with tariffs. “For supply chain officers, uncertainty is the name of the game,” said Victoria Gutierrez. With climate-related issues and global events increasingly affecting food prices, it remains to be seen how companies will balance profitability with customer affordability.
Source: https://www.nytimes.com/2025/03/05/business/tariffs-food-supply-chains.html