By Andi Anderson
Food businesses in Illinois are struggling as ongoing trade tensions and tariffs affect their operations. These tariffs are making it harder for businesses to import fresh produce from countries with warm climates.
Products like bananas, pineapples, and mangoes cannot be grown in the U.S. and must be imported, but new tariffs make these imports expensive and uncertain.
Warehouses and distributors are unsure whether to purchase goods now or wait, making planning and budgeting difficult. Perishable goods cannot be stockpiled, and consumers may face rising prices.
Trade officials claim the tariffs are meant to bring manufacturing jobs back to the U.S., but food cannot be reshored in the same way. Fresh produce supply depends on seasonal and regional conditions, which require a stable and functioning trade system.
Small businesses are especially hurt by these tariffs. Larger companies can handle reduced profits, but small businesses often have tighter margins and fewer resources. They may be forced to pass higher costs onto customers or face closure.
Farmers are also impacted. Tariffs from other countries on U.S. crops like soybeans have reduced market prices. Illinois is one of the top states for soybean exports, but trade tensions have caused prices to drop significantly. Farmers are uncertain if they will break even and are hesitant to invest in new equipment or supplies.
Fertilizer prices are also rising due to tariffs on imports from countries like Canada. This adds to the growing cost of farming.
While a 90-day pause on some tariffs has offered temporary relief, uncertainty remains. Farmers and food businesses worry that once markets are lost to global competitors, it is hard to win them back.
Photo Credit: gettyimages-zoran-zeremski
Categories: Illinois, Business