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US baby formula imports to ‘face tariffs again’ – Wall Street Journal

2023-01-06 FoodBev Media

Tag: nutrition

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US-imported baby formula is likely to be subject to tariffs again after the expiry of exemptions that were implemented last year amid a nationwide shortage.

As the availability of powdered baby formula in US stores has improved in recent months, foreign providers that delivered last year are set to be subject to tariffs again.

The shortage which began due to pandemic-induced supply chain issues, worsened last year when the biggest US supplier, Abbott Laboratories, recalled some formulas due to safety concerns and closed a manufacturing plant.

Citing people familiar with the matter, Wall Street Journal said temporary exemptions will expire soon and foreign importers will face tariffs of up to 17.5%. Out-of-stock levels of powdered baby formula in US stores fell to 14% in October from 30% in July, according to market research company IRI.

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