U.S. Tariffs Put Pumpkin-Spice Staples on Costlier Path
Industry leaders say country-specific import rates on tropical spices are driving up costs that may take time to reach store shelves.
Overview
- Key ingredients in the blend—cinnamon, nutmeg, ginger, cloves and allspice—are largely grown overseas, limiting U.S. substitution.
- World Bank WITS data shows a 10% baseline on spice imports with higher country rates, including India at 50% and examples such as cinnamon from Indonesia at 19% and Vietnam at 20%.
- McCormick & Company estimates about $90 million in annual tariff exposure, roughly $50 million in 2025, and says the measures raise costs without spurring U.S. production.
- Trade groups report companies may shift sourcing to lower-tariff countries or use more artificial flavors, which could affect taste and reduce premium options.
- The American Spice Trade Association is seeking relief for items deemed 'Unavailable Natural Resources,' while consumer prices, including Starbucks’ latte, have shown little immediate change.