"The price of most organic food could jump this fall due to new policies and tariffs on imported organic sugar, frustrating manufacturers who say the actions won't help sugar growers but could put some food companies out of business. More than 90% of organic sugar used by U.S. manufacturers is imported. The price of that product increased in August when the Trump administration imposed steep trade tariffs, and will rise even more when high-tier duties on most organic sugar imports take effect Oct. 1."
"The limits on duty-free imports of specialty sugar plus a new 50% tariff on Brazil, which supplies 40% of the U.S.'s organic sugar, is especially difficult because organic products are already more expensive than their conventional counterparts. Growers must meet more requirements to be certified organic, such as restrictions on pesticides and fertilizers. U.S. manufacturers say that buying domestic organic sugar"
The U.S. imports more than 90% of the organic sugar used by domestic manufacturers, with annual imports of 1,825 tons required under a WTO agreement and USDA quotas for additional specialty sugar. The USDA set the duty-free specialty sugar quota to zero for Oct. 1, meaning all organic sugar imports beyond the WTO minimum will face high out-of-quota duties. The Trump administration imposed steep trade tariffs in August and added a new 50% tariff on Brazil, which supplies 40% of U.S. organic sugar. The Organic Trade Association estimates organic sugar prices will average 30% higher, increasing production costs across a wide range of organic foods and potentially threatening some companies.
Read at Fast Company
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