Organic food manufacturers are bracing for steep cost increases this fall as new U.S. tariffs and zero import quotas on organic sugar take effect. With more than 90% of organic sugar in the U.S. imported from other countries, prices are expected to rise by as much as 30%.
Key Takeaways
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Tariffs and quotas driving costs: New duties and zero duty-free import quotas mean the U.S. will soon pay high-tariff rates for almost all imported organic sugar.
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Limited domestic supply: The U.S. has only one farm and mill producing organic sugar, meeting just 8% of domestic demand, leaving manufacturers highly dependent on imports.
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Impact on small producers: Many smaller food companies warn they cannot absorb the rising costs, raising the risk of plant closures, higher retail prices, and reduced consumer choice.
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