Business Daily Trump’s tariffs: The price of spice
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Apr 29, 2025 Eric Neumelin, Director of Sales, Marketing and Research at Hella Spice Canada, offers insights into the spice industry's future amid rising tariffs. He discusses the ripple effects of these trade barriers on import costs and food prices across North America. Neumelin highlights the struggles of small business owners and large companies alike in maintaining profitability and product integrity. He also explores how these tariffs challenge the culinary landscape and American cuisine, affecting everything from butter chicken to essential spice sourcing.
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Tariffs Threaten Spice Prices
- The US tariffs, initially up to 46%, risk drastically increasing prices for imported spices like black pepper from Vietnam.
- This threatens the survival of spice import industries and impacts consumer costs significantly.
Small Business Struggles With Tariffs
- Sana Javeri Kadri's spice import business faces unprofitability due to the 10% tariff despite hopes for profitability.
- Farmers hesitate to send peppers fearing price drops, but Sana commits to absorb costs to keep supply flowing.
Tariffs Raise Prices Broadly
- Tariffs increase costs by 25% for many ingredients, impacting all processed food products broadly.
- US consumers are expected to face average price rises of 7-8% due to tariff-induced cost increases.