The Consumer Brands Association has issued a statement in response to President Trump’s announcement of reciprocal and universal tariffs. Tom Madrecki, the vice president of supply chain resiliency, emphasized the importance of considering the impact of such tariffs on the consumer packaged goods industry, which is the largest domestic manufacturing sector by employment. With over 22 million American jobs and a contribution of $2.5 trillion to the US GDP, this industry plays a significant role in the country’s economy.
Madrecki pointed out that while the consumer packaged goods industry already manufactures the majority of its products in the United States, there are certain critical ingredients and inputs that need to be imported due to their scarce availability domestically. He emphasized that no amount of tariffs will bring these essential components back to the US.
The statement acknowledges the intention behind President Trump’s America First Trade Policy but also highlights the importance of recognizing US companies that are already operating in a way that supports domestic manufacturing while depending on imports for specific ingredients and inputs. Madrecki stressed the need for reciprocal tariffs to take into account concerns related to the availability of ingredients and inputs, as imposing tariffs without considering these factors could lead to increased costs, limited consumer access to affordable products, and unintended harm to iconic American manufacturers.
In order to protect manufacturing jobs and prevent unnecessary inflation at the grocery store, the Consumer Brands Association urged President Trump and his trade advisors to refine their approach and exempt key ingredients and inputs from the tariffs. By exempting these essential components, the association believes that the administration can support American manufacturers who rely on imported ingredients while still pursuing their trade policy objectives.
The statement underscores the complexity of the supply chain in the consumer packaged goods industry and the potential consequences of imposing blanket tariffs without considering the nuances of ingredient and input sourcing. It emphasizes the importance of finding a balanced approach that supports domestic manufacturing while also recognizing the realities of global supply chains and the need for certain imports.
As the debate over tariffs and trade policies continues, the Consumer Brands Association’s statement serves as a reminder of the interconnected nature of the global economy and the potential impact of unilateral trade actions on American businesses and consumers. By advocating for a more targeted and nuanced approach to tariffs, the association seeks to ensure that the consumer packaged goods industry can continue to thrive and contribute to the US economy while also addressing the challenges of ingredient and input sourcing in a global marketplace.
