April 2025 Tariff Update

I want to make you aware of how the Tariff increases announced on April 2, 2025 will affect us, and everyone downstream in our supply chain. Prices are increasing commensurate with these new increases in Tariffs. The tariff increases are on the value in the country of origin, and added to all other costs involved to import a product so our landed cost will be less than the tariff increase %. Tariffs are paid for by the importer in the destination country. The additional tariffs are substantial, so these increased costs will be passed on to the final consumer.

Our customers are very important to us. I am very proud that our entire staff here at SFI takes a lot of pride in doing the best job for our customers in every step of our global supply chain and domestic logistics.

Let’s examine the facts:

• Most foods we import are not grown or processed in the USA. These products do not pose an economic threat to any USA producer.
• Some items we import are produced domestically, however, the USA suppliers do not have the production to adequately support the demand here; such as Olive Oil or Olives.
• Increasing the Tariff on these food items will increase the cost to American consumers whether in a grocery store or a restaurant.

The new Tariff rates affect every country we purchase from except Canada and Mexico. We have about 400 SKUs coming from about 25 countries. We do source some products from the USA. Our team is in the process of updating our import cost to reflect the new Tariff for all shipments departing after April 9, 2025.

We are not in favor of randomly arrived at increases in Tariffs. We are in favor of bi-lateral and multilateral trade agreements or a re-setting of trade rules where an imbalance exists.

It should be noted that many Americans are currently employed in the handling of both imported and exported products. They work at the piers, they drive trucks to haul the containers from the port to the warehouses, they unload and warehouse these goods, they get trucked to distributors, and finally, the distributors warehouse and truck them to the end users/stores. Many American hands are required in the distribution of imported and exported products. Higher prices will lead to less consumption, inflation, and reduction in American jobs.

It is a big world with many diverse dynamics; we should all be able to work together. Here is one particular website which will serve as a good reference if you wish to follow along on your own https://www.oecgroup-communications.com/customs-brokerage-tariffs

Any SFI sales person or Executive is more than happy to discuss the current Tariff situation with you and how we can best support you, our valued customer.