Exclusive: US food giants PepsiCo, Conagra seek to exempt some imports from tariffs, trade group says
Companies
NEW YORK, March 12 (Reuters) - Major packaged food makers including Quaker Oats and Folgers coffee asked U.S. President Donald J. Trump for targeted exemptions from tariffs on imports like cocoa and fruit, according to a letter seen by Reuters.
PepsiCo (PEP.O), opens new tab, Conagra (CAG.N), opens new tab and J M Smucker (SJM.N), opens new tab, are requesting that Trump exempt ingredients not available from U.S. sources to protect manufacturers who otherwise buy from domestic farmers and suppliers, according to the letter, sent on Monday by a consumer products trade group representing the companies, the Consumer Brands Association.
Coffee, oats, cocoa, spices, tropical fruit and tin mill steel, used for specialty food and household goods, are among the imports listed as unavailable domestically in the letter.
"We believe targeted and carefully calibrated removal of these ingredients and inputs from tariffs is appropriate to best protect U.S. manufacturers and support (Trump's) efforts to lower consumer inflation," the letter said.
PepsiCo and Smucker, which have executives sitting on the executive committee of the Consumer Brands Association, did not immediately respond to requests for comment.
A spokesman for Conagra, whose CEO Sean Connolly is also on the industry group's executive committee, said the company, the maker of Swiss Miss hot chocolate, continues to evaluate its sourcing in light of possible policy changes.
Trump's new round of tariffs on goods from China, Canada and Mexico come at a delicate time for the U.S. packaged food and consumer product industry. Manufacturers fear having to pass new costs on to consumers, who are already buying less after double-digit inflation the last several years.
Trump campaigned to bring down the cost of living.
Tom Madrecki, vice president of campaigns and special projects for the Consumer Brands Association, said the letter is aimed at opening up a conversation with the Trump administration on exemptions.
Trade enforcement, including tariffs, he said, has to be "done strategically and (it) has to ladder back up to protect manufacturers," Madrecki said. He noted that bamboo fiber from Australia, used in the absorbent pads for diapers, is another import unavailable domestically.
U.S. companies including Colgate Palmolive (CL.N), opens new tab and Edgewell (EPC.N), opens new tab face exposure to tariffs.
Colgate, which makes toothpaste in Mexico, is looking at ways to reduce the impact of tariffs. But the company doesn't expect it will be able to fully mitigate them, its chief investor relations officer John Faucher said Wednesday at an industry conference.
"There still will be an impact both from the initial tariffs, as well as in terms of what happens with any sort of retaliatory tariffs as we look at impact with Mexico or Canada," Faucher said.
Banana Boat sunscreen maker Edgewell said it was looking to lock in prices from Chinese suppliers on sunscreen chemicals ahead of tariffs. Procter & Gamble (PG.N), opens new tab also said it may have to raise prices to deal with the looming trade war.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
a minute ago
- Telegraph
US will only give ‘minimal' security guarantees to Ukraine, Europe warned
The United States will only play a 'minimal' role in security guarantees for Ukraine, a top Pentagon official has reportedly told European military planners. Elbridge Colby, the US defence undersecretary for policy, broke the news to military chiefs from the UK, France, Germany, and Finland, who had flown to Washington for hastily arranged talks with their American counterparts. The Europeans had been tasked with finding out what Donald Trump was prepared to offer after the US president suggested he would take part in a European-led effort to enforce any peace deal in Ukraine. 'There's the dawning reality that this will be Europe making this happen on the ground,' a Nato diplomat told the Politico news website. 'The US is not fully committed to anything.' Another source added: 'I don't know where that leaves us… Pretty much back to where we were in the spring with the coalition of the willing.' A European official told The Telegraph: 'It looks like it's up to us.' European hopes for a more meaningful contribution had risen after Mr Trump told continental leaders, including Ukraine's Volodymyr Zelensky, he would take part in 'Article 5-style' guarantees for Kyiv, after talks with Vladimir Putin in Alaska. However, officials briefed on the talks told The Telegraph that the US president did not go into details about how he could assist during their private discussions. Despite the lack of detail, the likes of Sir Keir Starmer and Emmanuel Macron leapt on Mr Trump's public remarks as a major win for Ukraine and Europe.
Telegraph
a minute ago
- Telegraph
Will Gavin Newsom's Trump-ification help him win the White House?
As Gavin Newsom attempts to cement his place as the likely Democratic candidate for the 2028 election, he is turning to a familiar playbook. The California governor's social media account has been filled with a torrent of long rants in capital letters, AI memes of himself topless riding bears and a series of pithy nicknames for his political enemies. So far, it seems to be working. The 57-year-old has packed his communications department with Gen-Z advisers who are helping the Democrat Maga-fy himself by mimicking Donald Trump and riling up his Republican base in turn. The strategy has earned team Newsom ample news coverage and thousands of new followers but it is his success in triggering the Magasphere that has left him feeling the most smug. In one AI meme, shared by the governor, Mr Newsom's visage has been added to Mount Rushmore. In another his cartoonishly-inflated muscles bulge from underneath his vest while he waves a star spangled banner overhead. Mr Trump's supporters, Tucker Carlson, Kid Rock and the late Hulk Hogan appearing in angel form, pray over the governor in another provocative AI image. 'DONALD IS FINISHED — HE IS NO LONGER 'HOT,'' Mr Newsom's office declared on August 14. 'FIRST THE HANDS (SO TINY) AND NOW ME — GAVIN C. NEWSOM — HAVE TAKEN AWAY HIS 'STEP'. MANY ARE SAYING HE CAN'T EVEN DO THE 'BIG STAIRS' ON AIR FORCE ONE ANY MORE — USES THE LITTLE BABY STAIRS NOW.' Abigail Jackson, the deputy White House press secretary, shot back, decrying the governor, who was evoking her boss, as 'very weird and not at all funny'. Dana Perino, the Fox News host, who appeared to miss his ironic tone, earnestly advised Mr Newsom that if he wants to run for president he needs to 'be a little more serious'. Mr Newsom's team jumped on the criticism, with an all-caps post filled with name-calling, cheap attacks and bragging. The post read: The governor has brushed off criticism of his brash new strategy, claiming he is issuing a 'wake-up call' to Mr Trump. 'I'm sort of following his example. If you've got issues with what I'm putting out, you sure as hell should have concerns about what he's putting out as president,' he said. Prior to his transformation to full-blown Maga antagonist, Mr Newsom had been creeping increasingly to the centre, launching a podcast where he hosted guests from across the political divide. Charlie Kirk, Steve Bannon and former House Speaker Newt Gingrich have all appeared on his new show called This is Gavin Newsom. In March, Mr Newsom broke with his party to criticise the inclusion of trans athletes in women's sports. But his embrace of the Right-wing was short-lived and Democrats argue Mr Newsom's parody social media posts cast him as the official Republican opposition. 'The definition of insanity, as the old saying goes, is doing the same thing over and over again and expecting a different result, and it's certainly different,' Jason Ortiz, the Democratic strategist, said of the governor's social media activity. 'There's no question that a front on the battlefield is online, social media and to date there are few Democrats who have been able to use those tools effectively and to really get the kind of attention that the Right has been very good at capturing,' he said. Mr Ortiz said Mr Newsom's strategy 'to fight fire with fire is generally a very positive thing'. His comments reflect a growing sentiment in the Democratic Party and its base that its politicians need to stop taking the high road. 'The big divide in the Democrats right now is not, you know, liberals versus establishment, or progressives versus liberals, it's very much, are you a fighter or are you not?' said Christopher Galdieri, politics professor at Saint Anselm. Mr Newsom's Maga tweets show him as someone willing to put his head above the parapet and go tete-a-tete with his political rivals. 'It's a clear sign of ambitions about 2028 and I think he's banking on the idea that Democrats are going to be asking the candidates for president, whoever they might be, 'what did you do? How soon did you do it and how aggressive were you?'' But is this tongue-in-cheek approach a winning strategy outside the confines of the social media bubble? Tactic could 'backfire' Mr Galdieri said this tactic could 'backfire' if Democrats decide they do not want a 'Tweeter-in-chief'. Jennifer Grygiel, an associate professor at Syracuse University who specialises in memes and social media, said she does not think being anti-Trump is a winning formula. 'Honestly, Gavin Newsom, the guy looks like he's a step away from a villain,' Prof Grygiel said. 'Following Trump is a slippery slope for anyone who actually paints themselves or actually is authentically somebody who's trying to do something progressive. So taking on a Trumpian tone... I can't just see politicians memeing their way into office,' they said. 'I think, for better or for worse, maybe he is emerging as something that is new, but maybe not necessarily better.' Trying to outdo Mr Trump at being Mr Trump is a losing game, according to Amy Koch, the Republican strategist. 'I have seen people try to sort of mimic Trump or mock Trump. I just don't know that anybody can outdo Trump, even in like, the kind of outrageous funniness of it, so I don't think it's going to be effective,' she said. While Ms Koch said the social media shift might help Mr Newsom lock up the Democratic nomination for 2028, she does not think it will translate well to the electorate as a whole. 'I think that, in general for independents and centre-right people, it's just too much,' she said. 'It will get old, it will get worn out, if it's not already, and it won't work... in general people, just everyday people aren't paying attention to Twitter.'
Reuters
a minute ago
- Reuters
Gold inches lower on hawkish FOMC minutes, focus on Jackson Hole summit
Aug 21 (Reuters) - Gold prices edged lower on Thursday after the U.S. Federal Reserve's July meeting minutes showed a majority consensus on holding interest rates steady, as investors look to the central bank's annual Jackson Hole symposium later in the day for further policy cues. Spot gold was down 0.2% at $3,340.09 per ounce, as of 0802 GMT. U.S. gold futures for December delivery also lost 0.2% to $3,382.30. Minutes from the Fed's July meeting showed the policymakers who dissented against last month's decision to keep interest rates unchanged - Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller - were alone in advocating for a rate cut. "FOMC minutes were hawkish, the Fed's board remains inclined to prioritize inflation control by keeping monetary policy tight rather than cutting the cost of money," said Carlo Alberto De Casa, external analyst at Swissquote. Non-yielding gold typically performs well in a low interest rate environment. The Fed has held rates steady since December, although investors still expect an 81% chance of a quarter-point cut by September, according to the CME's FedWatch tool. Fed Chair Jerome Powell is expected to speak on Friday at the August 21-23 Jackson Hole symposium, with investors watching whether he backs measures to bolster the labour market or focuses on curbing inflation. "A hawkish Fed could have an impact on the gold price, but as long as gold remains in the $3,270-3,440 range, there are no massive risks for big falls (given) that central banks are still buying tonnes of gold," De Casa added. Meanwhile, President Trump called on Fed Governor Lisa Cook to resign over allegations made by one of his political allies about mortgages she holds, intensifying his efforts to influence the central bank. Cook said she had "no intention of being bullied to step down" from her position. China's central bank added gold to its reserves in July, its ninth consecutive month of purchases, official data showed earlier this month. Spot silver was down 0.2% at $37.83 per ounce, platinum fell 1% to $1,326.93 and palladium shed 0.8% to $1,105.12.
