In the wake of Donald Trump’s victory in the 2024 election, the food and drink industry is bracing for potential changes as the new president has already promised significant import taxes on goods coming into the United States. Trump, known as the ‘Tariff Man’, has indicated that countries, especially China, could face tariffs as high as 60%. With Trump’s pledge to “make America great again”, many are wondering what impact his policies will have on the food and drink sector during his second term in office.
One of the key areas of concern is the implementation of tariffs. Experts believe that Trump will follow through on his promises to deploy tariffs, potentially as high as 20%. This could have significant implications for the global food and drink trade, particularly with the European Union, which has seen a significant increase in agri-food exports to the US in recent years. Trump’s disdain for international trade deals could mean that existing agreements may need to be renegotiated or cancelled to prioritize America’s interests.
Brexit Britain, on the other hand, could potentially benefit from Trump’s focus on larger trading partners like the EU. With a more balanced trade relationship with the US, the UK may be able to avoid the worst of Trump’s tariffs. However, Trump’s threats to impose tariffs on the EU unless they buy more American products could have wider implications for the global economy.
The introduction of tariffs is likely to lead to inflation in the US, as consumers and manufacturers will bear the brunt of the increased costs. This could result in higher prices for imported goods, further impacting the food and drink industry. As tariffs are expected to impact a significant portion of US imports, inflation rates could see a notable increase, according to economic forecasts.
Despite the challenges posed by Trump’s trade policies, many European food and drink businesses are looking to expand into the US market. European bakeries, in particular, have been eyeing opportunities in North America, where there is a gap in the market for their products. Some European manufacturers have even established manufacturing sites in the US, anticipating growth and seeking to capitalize on the benefits of operating closer to their target market.
In response to Trump’s election victory, food and drink trade bodies in the US have called for increased funding for agriculture and food science. Collaborating with the incoming administration to support innovation and research in the sector is seen as crucial for the industry’s growth and development. Urgent action is needed to pass new legislation that addresses the evolving needs of US agriculture, as well as to provide funding for research and expertise in food science.
Overall, the food and drink industry is bracing for potential challenges and opportunities under Trump’s leadership. With the implementation of tariffs and the potential for inflation, businesses will need to adapt and strategize to navigate the changing landscape of international trade. Collaboration with the government and investment in innovation will be key to ensuring the sector remains resilient and competitive in the face of uncertainty.