Why is the USDA choking off organic sugar imports as tariffs hit?

"The price of most organic food could jump this fall because of 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."

"Each year, the U.S. imports 1,825 tons of specialty sugar because it is required under a World Trade Organization agreement. But demand for organic sugar far exceeds that amount, so the U.S. Department of Agriculture sets an annual quota for the amount of specialty sugar that can be imported into the U.S. duty-free. Last year, the quota was 231,485 tons, which still wasn't enough to meet demand."

"The U.S. Department of Agriculture has said its restrictions on specialty sugar imports are intended to help the U.S. sugar industry. In response to questions about its new policy, the USDA released a statement saying that "the decision was not made to benefit any single entity," and it would continue to monitor market conditions. Specialty sugar policy could lead to higher prices 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."

Most organic sugar used by U.S. manufacturers is imported, and more than 90% comes from abroad. Prices rose in August after steep trade tariffs and will increase further when high-tier duties on most organic sugar imports take effect Oct. 1. The USDA set the annual specialty sugar quota to zero for imports beyond the WTO minimum, while a new 50% tariff targets Brazil, which supplies 40% of U.S. organic sugar. The Organic Trade Association expects organic sugar prices to rise about 30% on average, raising costs for organic food production and risking some manufacturers' viability.

Read at Los Angeles Times