SHF Perspective on Recent Tariff Announcements – August 2025

The recent tariffs imposed by the U.S. government – especially those levied on imports from India and Brazil – will have a significant impact on the honey industry given the sizeable imports from those origins. Higher costs for raw materials will be immediate, and additional market volatility should be expected.

The purpose of this communication is to provide an update on the recently imposed global tariffs and share our perspective on implications for the honey industry.

Background:
In late June and early August, executive orders were issued by the President that adjusted global tariff rates beyond the 10% baseline rate from April 2025. Most relevant to the honey industry are the following orders:

• Brazil (July 30, 2025) – increases the tariff rate on imports from Brazil to 50%
• India (and others) (July 31, 2025) – increases the tariff rate on imports from India to 25%
• India (August 6, 2025) – increases the India tariff rate to 50% effective August 27, 2025

These tariff rates are especially impactful to the honey industry in the U.S., because:

• Three-quarters of honey consumed in the U.S. are imported from overseas
• India and Brazil supply half of all honey imported into the U.S. per the National Honey Board
• 85% of organic honey consumed in the U.S. comes from Brazil or India according to the USDA, and there is no commercially viable organic honey produced domestically

Company Actions:
To help delay the impact of the tariffs, Sweet Harvest Foods is working with our suppliers to accelerate shipments on open contracts, and our technical team is identifying honey from alternate origins to help mitigate the tariff impact. However, given the magnitude of the tariffs and importance of Brazil and India to the honey supply, we believe that U.S. honey packers – including Sweet Harvest Foods – will have no alternative but to pass through price increases within the next few months.

We commit to maintaining open communication with you on this issue and will share more information as the situation unfolds. In the meantime, please don’t hesitate to contact your Sweet Harvest Foods sales representative with questions or comments.

Thank you for your continued support.

Frequently Asked Questions – August 2025 Tariff Impacts

Aren’t the tariffs being challenged in court? When will we know more about their fate?
On May 28, 2025, the Court of International Trade ruled against the President’s use of the International Emergency Economic Powers Act to levy tariffs, and the matter was quickly appealed to the Federal Circuit Court of Appeals. (The government can continue collecting tariffs while the matter is under consideration.) Oral arguments were heard by circuit court judges on July 31, 2025, and a ruling is expected in August or September. Experts believe the case will be appealed to the U.S. Supreme Court regardless of the ruling from the circuit court, with a final decision coming sometime in 2026.

What if I don’t source honey from India or Brazil. How is this relevant to me?
The July 31, 2025, executive order also imposed lesser reciprocal tariffs on other honey-producing countries including New Zealand, Thailand, Taiwan, Turkey, Zambia and the European Union. These origins tend to be a smaller part of U.S. consumption but will still be impacted by the increased tariffs. Also, the honey industry is a dynamic global industry and shocks to one origin have the potential to impact the offerings/pricing from other origins on a longer-term basis.

Aren’t imports that were in transit when the new tariff rates were announced exempt for a period of time? How are you accommodating for imports that are ‘grandfathered’?
Overall, there is existing inventory across the supply chain that will be exempt from the recent tariff activity. After the initial baseline global tariffs were announced in April 2025, it took a couple of months before prices began adjusting as manufacturers worked through their lower cost material. We expect a similar lag in implementation for the recently announced tariff rates as well.

Are there issues with the availability of honey as well? Am I at risk of being shorted?
In general, global supplies of honey are sufficient to meet current demands. This is just a pricing issue.

The tariff situation is fluid. What if the rates come back down?
The uncertainty around tariffs certainly makes business planning and forecasting quite difficult. At Sweet Harvest Foods, we will react to the best information available at the time and adjust prices accordingly if the tariff rates change – either higher or lower – from the current levels. Additionally, it is important to recognize that the worldwide honey markets are dynamic, and additional factors such as weather, anti-dumping activity and
geopolitical issues could also play a role.

What if I have a contract in place with you?
Given the unusual tariff environment, most purchase agreements entered within the past several months make accommodations for additional adjustments to tariff rates. We commit to collaborating with our customer partners to mitigate/delay the impact of the tariffs as much as possible.

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