Updated: Jun 4, 2019
I guess by now, many if not all of you, have heard our President’s threat to impose tariffs on both China and Mexico. Well, it is no longer a threat as our President has moved forward with his threat against China on items scheduled to be shipped to the U.S. starting on May 10, 2019. Though in-stock items from your vendors are available, it is unclear if all vendors will distinguish the difference or impose the tariff unilaterally.
This means that all your hard work to create a realistic budget for the FY 2019 will most likely see an unexpected increase. As such, you must reach out to both your food and nonfood sales representative for information on how you can track and quantify the impact the tariff will have on you. This will help you track and even justify to your leadership on potential variances in your 2019 budget.
An article published by US Foods provided a time line of the tariffs to date that I thought could be helpful to you in figuring out exactly what is going on. Don’t forget that Mexico is now also facing a 5% tariff on Mexican goods if Mexico does not stem the flow of immigrants to the United States. The scary part of this is the fact that our President is threatening to go as high as 25% increase on all imports from Mexico.