Seasoning and Dressing Manufacturers NAICS 311941, 311942

Aug 23, 2025 - Tariffs Impacting Spice Trade

• Tariffs on exports from India and other spice producing countries imposed by the Trump administration are poised to reshape the global spice trade, with spices and seasonings from India becoming less attractive in the US market compared to other origins like Vietnam and Indonesia, exporters told the Hindu Buinessline. In 2024, the US imported more than $410 million in spices from India, according to the USDA, and the US is the second largest market for Indian spices. Several essential spices, including cinnamon, pepper, nutmeg and cloves, require tropical climates and, therefore, cannot be grown in the US on a large enough scale to meet demand, the executive director of the American Spice Trade Association, Laura Shumow, said in a statement. US consumers, restaurants, and food manufacturers are likely to face high prices for imported spices from India – and other countries slapped with tariffs – or supply constraints as importers cut back.
• Spice and flavorings giant McCormick is speeding up efforts to remove artificial food dyes from its products as efforts to eliminate synthetic dyes from the US food supply gain momentum, Food Dive reports. Health and Human Services Secretary Robert F. Kennedy Jr. has called for the removal of eight artificial dyes from the US food supply. The dyes, found in candy, soft drinks, and some salad dressings, lemon‑pepper seasoning, and marinades, are used to offset color loss due to exposure to light, temperature extremes as well as to provide color to colorless and "fun" foods, according to the Food and Drug Administration. In a recent earnings call, McCormick’s CEO said the company has been working for some time to reformulate its products to remove artificial colorants and to reduce sodium levels. McCormick says it's working with restaurants and food manufacturers that are under pressure to eliminate artificial dyes.

• After threatening to impose 25% tariffs on goods from Canada and Mexico – the two largest suppliers of seasonings to the US – President Trump reversed course, announcing imports from those two countries will remain tariff-free for at least one more month. The pause ensured short-term stability for spices like chilies, cumin, and oregano, which are key exports from Mexico, wrote US spice manufacturer Majestic Spice in a blog post. However, tariffs ranging from 10-25% remain in place on Chinese imports, including garlic, ginger, and star anise. Garlic imports from China – valued at around $100 million annually – carry a 25% tariff, while ginger faces similar high tariffs, impacting costs for importers and ultimately US consumers. Because the US relies heavily on imported spices, even small policy changes can impact costs, supply, and sourcing decisions, according to Majestic Spice.
• Producer prices for seasoning and dressing manufacturers reached a new high in July, rising 1.4% compared to a year ago, after rising 1.5% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Meanwhile, retail prices for spices, seasonings, condiments, and sauces increased 1.7% year over year in July but dipped 0.3% versus June, per the BLS. Employment by the industry shrank 2.9% YoY in June, while average wages at food manufacturers rose 2% YoY in July to $24.04 per hour, down a bit from their peak in January, BLS data show.