#USA #Washington #Food Industry #Tariffs #National Restaurant Association

New Tariffs and Their Effect on the Restaurant Industry

On August 1, 2025, President Donald J. Trump revealed new tariffs that are set to impact food and beverage pricing across the nation. The National Restaurant Association (NRA), through its President and CEO Michelle Korsmo, expressed concerns regarding how these tariffs could impose further strain on restaurant operations, an industry already burdened by increasing costs and regulatory pressures.

Rising Costs in the Restaurant Sector

The restaurant industry has witnessed nearly a five percent increase in wholesale food costs compared to the previous year, making it increasingly challenging for restaurant operators to maintain affordable prices for consumers. The new tariffs are predicted to exacerbate these challenges, leading to higher costs for popular dining staples, including coffee, hamburgers, and other essential menu items.

Korsmo's statement reflected the tough realities facing the industry: "Operating a restaurant is becoming increasingly difficult due to economic and regulatory pressure." She indicated that while the NRA is still assessing the full impact of these tariff announcements, it is clear that increased costs will hinder access to many key products that are essential for running a restaurant.

Price Increases Likely

With profit margins razor-thin, many restaurant operators might feel compelled to raise menu prices to keep up with increased costs. This possibility is particularly concerning, as higher prices may deter customers from dining out as frequently, which could have a cascading effect on the industry and lead to job losses. Korsmo highlighted that a decline in dining out frequency could jeopardize jobs and harm local economies reliant on thriving restaurant businesses.

Call for Policy Changes

In response to these changes, the NRA has urged the Trump Administration to pursue sensible trade agreements. While the need to address trade deficits remains essential, the association believes that food and beverage products do not significantly contribute to these trade imbalances. They advocate for exempting food and beverage items from these tariff negotiations, particularly emphasizing the importance of USMCA-compliant goods remaining exempt during ongoing talks with Canada and Mexico. A proactive response will not only help protect small businesses but will also preserve jobs and maintain affordable dining options for American families.

Korsmo concluded by stressing the resilience of the restaurant sector but highlighted the crucial need for policy frameworks that enable continued service to communities across the nation.

About the National Restaurant Association

Founded in 1919, the National Restaurant Association is the largest business association representing the restaurant industry, with over one million restaurant and food service outlets across the United States, employing more than 15.7 million people. Through advocacy, education, and food safety initiatives, the NRA works diligently to ensure that every restaurant has the support it needs to thrive. Notable programs include the National Restaurant Association Show and the ServSafe food safety training and certification. For further information, visit Restaurant.org.

While the industry continues to grapple with rising costs, the NRA's advocacy for sensible policies could pave the way for a more stable and predictable environment for both operators and consumers.