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Food Safety Risks of Rising Tariffs: Industry Impacts & Solutions

Tariffs are designed to protect domestic industries, but they often create unintended consequences, especially in sectors like food safety.

Spoons of spices and nuts titled Food Safety Risk of Rising Tariffs. Industry Impacts & Solutions from D.L. Newslow & Associates, Inc.

As companies shift away from expensive imports, domestic growers and manufacturers experience demand surges, sometimes outpacing food safety infrastructure. This imbalance raises concerns about contamination risks, food fraud, supply chain integrity, and the broader impact on various industries.


This blog examines how tariffs impact food safety, explores real-world examples, and suggests steps for mitigating risks across the supply chain.


How Tariffs Disrupts Food Safety:

1. As tariffs make imported foods more expensive, U.S. producers often face unexpected demand surges. This can create food safety challenges, including:


  • Processing facilities running beyond capacity, leading to lapses in sanitation and increased microbial risks.

  • Workforce expansion without adequate food safety training, increasing contamination hazards.

  • Extended production cycles, making it difficult to maintain strict environmental controls, allowing pathogens to thrive.


Example: Meat and Poultry Contamination

During past tariff hikes, domestic meat processors struggled with demand spikes, leading to higher instances of bacterial contamination in poultry and beef due to rushed processing schedules. This resulted in an increase in product recalls.


  1. Black Market & Fraudulent Imports

High tariffs on imported foods such as avocados, mangoes, specialty cheeses, and seafood have led to:


  • Undocumented shipments entering markets through unregulated channels.

  • Unverified transportation conditions, where products spoil due to lack of proper refrigeration.

  • Falsified traceability documentation, making recalls nearly impossible.


Example: Illicit Avocado Trade

Following major tariffs on Mexican-grown avocados, a black market emerged where illegally imported produce bypassed safety regulations. These shipments lacked proper refrigeration during transport, increasing the risk of salmonella outbreaks.


3. Economically Motivated Adulteration (EMA)

As food manufacturers try to offset higher costs, they may cut corners or commit food fraud, such as:


  • False organic labeling, misleading consumers about product quality.

  • Dilution of premium food oils, substituting lower-cost ingredients without disclosure.

  • Misrepresentation of country of origin, to evade tariffs


Examples: Olive Oil Fraud

When tariffs affected high-quality European olive oils, some suppliers diluted their premium oils with cheaper alternatives—while still selling them at premium prices. This not only cheated consumers but violated food safety standards by introducing unknown contaminants.


Beyond Food: The Ripple Effects of Tariffs Across Industries

While the food sector feels the immediate impact, tariffs also create disruptions in other industries, influencing food safety indirectly.

1. Packaging Industry Challenges

Tariffs on steel and aluminum have increased costs for canned goods, beverage containers, and food packaging materials, leading to:

  • Shortages in FDA-approved food-grade packaging.

  • Use of alternative materials that may not meet strict safety regulations.

  • Supply chain bottlenecks, delaying food product distribution.

 

2.      Struggles in Retail & Consumer Goods

Retailers experience higher costs on imported food and household products, forcing them to:

  • Source lower-quality alternatives, risking product safety.

  • Pass cost increases onto consumers, reducing accessibility to safe, high-quality foods.


Mitigating Food Safety Risk: Industry Solutions

To counteract these challenges, food manufacturers, regulators, and businesses must take proactive steps:


1.      Conduct Vulnerability Assessments

  • Identify weak points in supply chains affected by tariffs.

  • Examine new supplier relationships for food safety risks.


2.      Strengthen Supply Chain Oversight

  • Enhance supplier verification protocols to prevent fraudulent substitutions.

  • Revalidate critical control points under new operating conditions.


3.      Improve Product Testing & Compliance

  • Implement targeted testing programs for imported products.

  • Invest in blockchain technology for food traceability and recall efficiency.


Tariffs create complex challenges beyond trade policy, affecting food safety, supply chains, and broader industries. While regulatory oversight and strategic planning can help mitigate risks, businesses must remain vigilant in adapting to these evolving economic conditions.


Up-and-coming In-Person Food Safety Workshop Courses:


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