US Tariffs on Food & Agriculture

What This Covers

The food and agriculture surcharge covers meat, dairy, produce, beverages, processed foods, and agricultural commodities classified under HTS chapters 01-24. Tariff rates in this sector are highly variable, with some products entering duty-free and others subject to tariff-rate quotas (TRQs) that impose steep over-quota duties. Following the Supreme Court's February 20, 2026 ruling striking down IEEPA reciprocal tariffs, all food-exporting countries now face a uniform 10% Section 122 tariff (effective February 24, 2026, expiring ~July 24, 2026), replacing the country-specific rates that had penalized major agricultural exporters at different levels.

Most Affected Countries

The European Union benefits substantially from the shift to a uniform 10% rate, down from the 20% IEEPA reciprocal tariff that had been hitting high-value exports like cheese, wine, olive oil, and processed foods. Mexico and Canada continue to benefit from USMCA, which provides duty-free treatment for most agricultural products, giving them an even more pronounced cost advantage now that competing exporters face a lower but still meaningful 10% Section 122 rate. Brazil and Chile, as major suppliers of coffee, fruit, and meat to the US, see their costs reduced under the uniform 10% Section 122 rate compared to the higher IEEPA rates they had faced.

How Surcharges Stack

Food tariff stacking now follows a simpler pattern with the uniform 10% Section 122 rate replacing variable reciprocal rates. French wine with a 6.3 cents per liter base rate now faces the 10% Section 122 tariff — a meaningful reduction from the former 20% EU reciprocal rate. Over-quota dairy imports can face base rates of 25% or more, and the 10% Section 122 tariff adds to this, but the total is lower than under the old country-specific IEEPA regime. USMCA-compliant food products from Mexico and Canada avoid the Section 122 tariff entirely, widening their price advantage now that competitors face only 10% rather than the previously higher reciprocal rates. The Section 122 tariff expires around July 24, 2026, which could further reduce costs for imported food products from all origins.

Sourcing Strategies

Food importers should continue to maximize sourcing from USMCA partners Mexico and Canada for duty-free treatment, geographic proximity, and reduced spoilage risk. The reduction to a uniform 10% Section 122 rate has reopened European specialty food imports — Italian olive oil, French wine, Spanish cheese — as more viable options compared to the higher IEEPA rates that had been squeezing margins. For products not available from North American or European sources, the uniform 10% rate means importers can choose suppliers based on quality and price rather than tariff differentials between countries. Planning for Section 122's July 2026 expiration is particularly important for food importers negotiating annual supply contracts.