Prices threaten the American cooking industry with $ 454 million in additional costs

The American bakery industry is preparing for a major financial success – up to $ 454 million in additional costs this year – due to new prices on goods imported from Canada, Mexico and China, according to the American Bakers Association. This estimate came before the United States and China accelerated its reprisals.

These prices, with a wide range of 10% to 145%, affect essential ingredients, packaging and equipment on which commercial bakers count daily.

“US baked manufacturers are counting on global supply chains for essential ingredients and equipment,” said ABA in its March analysis. “Prices threaten to increase costs and tension operations, compromise businesses, workers and consumers.”

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ABA estimates that more than half of all imports used by American bakers come from the three countries faced at new or restored prices. Bakers imported nearly $ 1 billion in Canadian products only last year, including $ 193 million in ingredients. A 25% rate would classify 244 million dollars in additional costs.

Mexico, another key partner, sent $ 679 million in goods related to cooking in the United States in 2024. If the full price of 25% is applied, the cost for bakers could jump from $ 170 million. Chinese imports for American bakers totaled $ 395 million in 2024. With the current trade war, this number could total nearly $ 1 billion in 2025.

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Although large commercial bakeries can have the resources to absorb some of these additional costs, small family businesses are particularly vulnerable. One of these companies is the Bretzels of Uncle Jerry, an operation of 30 employees in the county of Lancaster, in Pennsylvania. The co -owner Misty Skolnick told USA Today that recent rates have forced him to rethink the price and production strategies.

Skolnick and his father, Jerry, have run the company since 1988. The company has already had to interrupt certain popular varieties after the increase in sesame seed prices. Now, with prices increasing the cost of imported chocolate and packaging, Skolnick is concerned about the duration of product quality without increasing prices.