The National Restaurant Association in the United States has stated that it was extremely concerned about the development in a letter to the US Trade Representative
Expressing concerns about the potential tariffs on imports from Mexico, Canada and the European Union, the National Restaurant Association in the United States has stated that it was extremely concerned about the development in a letter to the US Trade Representative, Reuters reported.
The report noted that the letter highlighted that a 30 per cent tariff on food and beverage products from Mexico and Canada would cost USD 15.16 billion to the United States restaurants after one year. The body has urged existing exemptions to remain in effect for USMCA-compliant goods.
Reuters highlighted that the body has noted that disruptions to restaurants’ razor-thin margins would lead to higher menu prices for consumers in the country. The tariffs on the EU or Brazil would pose challenges to the supply chain for coffee, beef, wine, spirits among other goods, the report noted.
However, several US restaurant chains have stated that they do not expect a significant impact from tariffs. The report added that Yum Brands, the company behind KFC and Taco Bell, sees minimal risk from tariffs. The parent company of Burger King, Restaurant Brands International, sources a significant portion of its goods within local countries, the report explained. (With Reuters Inputs)
