Today, the National Restaurant Association addressed the implications of new reciprocal tariffs announced by the Trump administration. These tariffs, imposed on imports from U.S. trading partners, are poised to impact the restaurant industry, according to Michelle Korsmo, President and CEO of the association.
“Applying new tariffs at this scale will create change and disruption that restaurant operators will have to navigate to keep their restaurants open. The biggest concerns for restaurant operators—from community restaurants to national brands—are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers,” Korsmo stated.
She highlighted that operators have managed to limit menu price increases to 30%, despite food costs rising by 40% over the past five years. This challenge underscores the tension restaurant operators face as they balance cost control with consumer pricing sensitivity.
“Restaurant operators rely on a stable supply of fresh ingredients year-round to provide the menu items their customers want and expect. Many restaurant operators source as many domestic ingredients as they can, but it’s simply not possible for U.S. farmers and ranchers to produce the volumes needed to support consumer demand,” added Korsmo. This reliance on imports paralleled the necessity for a stable supply chain, which these tariffs could disrupt.
During this period of uncertainty, the association plans to support its members through economic research and by bringing together supply chain experts. Their aim is to share strategies that could yield positive outcomes for both consumers and the business health of restaurants.
Korsmo also emphasized ongoing dialogues with the White House, urging that food and beverages be exempt from these tariffs. “The National Restaurant Association will also continue to share with the White House the real-life challenges these changes present for restaurant operators and ask to have food and beverages exempted from these tariffs,” she stated.
The association remains committed to mitigating the impact of these changes for the industry.
