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National Restaurant Association lobbies against US tariffs

The National Restaurant Association represents more than 500,000 U.S. restaurants

The logo of the National Restaurant Association is seen on its headquarters in Washington, D.C., U.S., September 1, 2020. / REUTERS/Andrew Kelly

The National Restaurant Association said it was “extremely concerned” about the possibility of new tariffs in a letter sent to U.S. Trade Representative Jamieson Greer on July 29.

Trump earlier in July threatened to impose 30 percent tariffs on imports from Mexico and the European Union starting on Aug. 1.

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The letter said that a 30 percent tariff on food and beverage products from Mexico and Canada would cost U.S. restaurants $15.16 billion after one year. It urged existing exemptions to continue for USMCA-compliant goods, and said disruptions to restaurants’ “razor-thin margins” would ultimately lead to consumers facing higher menu prices. 

The letter also said tariffs on Brazil or the European Union would pose “significant challenges” to the restaurant supply chain for goods like coffee, beef, and European food, wine and spirits.

Executives at several large U.S. restaurant chains have said in earnings calls that they do not expect significant impacts from tariffs. Yum Brands , the parent company of KFC and Taco Bell, has “minimal” risk from tariffs, its Chief Financial Officer Christopher Turner said in an earnings call at the end of April. Restaurant Brands International , the parent company of Burger King, sources the “vast majority” of its goods within local countries, according to Chief Financial Officer Sami Sidiqqui.

The National Restaurant Association, which represents more than 500,000 U.S. restaurants, earlier this year lobbied on trade policies to U.S. congressional representatives, senators, the U.S. Trade Representative, and the U.S. Department of Commerce, according to lobbying reports filed last week.

The letter sent July 29 echoed one the organization sent in Feb. to U.S. President Donald Trump that called for an exemption from tariffs on food and beverage products.

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