July 30 (Reuters) - The National Restaurant Association
said it was "extremely concerned" about the possibility of new
tariffs in a letter sent to U.S. Trade Representative Jamieson
Greer on Tuesday.
Trump earlier in July threatened to impose 30% tariffs on
imports from Mexico and the European Union starting on August 1.
The letter said that a 30% tariff on food and beverage
products from Mexico and Canada would cost U.S. restaurants
$15.16 billion after one year. It urged existing exemptions to
continue for USMCA-compliant goods, and said disruptions to
restaurants' "razor-thin margins" would ultimately lead to
consumers facing higher menu prices.
The letter also said tariffs on Brazil or the European Union
would pose "significant challenges" to the restaurant supply
chain for goods like coffee, beef, and European food, wine and
spirits.
Executives at several large U.S. restaurant chains have said in
earnings calls that they do not expect significant impacts from
tariffs. Yum Brands ( YUM ), the parent company of KFC ( YUM ) and Taco
Bell, has "minimal" risk from tariffs, its Chief Financial
Officer Christopher Turner said in an earnings call at the end
of April. Restaurant Brands International, the parent
company of Burger King, sources the "vast majority" of its goods
within local countries, according to Chief Financial Officer
Sami Sidiqqui.
The National Restaurant Association, which represents more
than 500,000 U.S. restaurants, earlier this year lobbied on
trade policies to U.S. congressional representatives, senators,
the U.S. Trade Representative, and the U.S. Department of
Commerce, according to lobbying reports filed last week.
The letter sent Tuesday echoed one the organization sent in
February to U.S. President Donald Trump that called for an
exemption from tariffs on food and beverage products.