• New 10% tariffs announced by President Trump could raise food and packaging costs, forcing restaurants to increase menu prices.
• The National Restaurant Association warns of supply chain disruptions, as U.S. agriculture may struggle to meet demand.
• The NRA plans to advocate for food and beverage tariff exemptions to reduce economic strain on restaurant operators and consumers.

Americans dining out may soon face higher costs after President Donald Trump announced a sweeping 10% tariff on imports and increased duties on nations imposing heavy tariffs on U.S. goods. The National Restaurant Association (NRA) voiced concerns over the economic strain this move could place on restaurant owners and consumers alike.

NRA President & CEO Michelle Korsmo warned that tariffs could inflate food and packaging costs, disrupt supply chains, and force restaurants to raise menu prices. She emphasized, “From local diners to national chains, operators are already stretched thin, and these tariffs will only add uncertainty while passing costs onto consumers.” Korsmo noted that while restaurants have limited menu price increases to 30% over five years, food costs have climbed 40%.

Supply Chain Challenges for Restaurants

Restaurant businesses rely heavily on a steady flow of fresh ingredients and materials. Despite efforts to source locally, Korsmo noted that U.S. agriculture cannot meet the demand alone. Tariffs could worsen supply issues, leaving restaurants scrambling to manage availability while addressing rising costs. She remarked, “Operators need predictability to deliver the meals customers expect.”

Advocating for Exemptions

The National Restaurant Association plans to engage with the White House to advocate for food and beverage exemptions from tariffs. Korsmo expressed the association’s commitment, saying, “We will continue sharing the real-world challenges these policies create for restaurant operators and work toward solutions.”

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