How US Tariffs Could Impact Your Office Food Program

What Is a Tariff—and How Do Tariffs Work?

A tariff is essentially a tax on goods brought in from other countries. When materials or products cross a border, the government may apply a fee—typically a percentage of the item’s total value. That added cost usually doesn’t stop with the importer. Instead, it tends to move through the supply chain, eventually reaching the businesses and consumers who rely on those products every day.

For example, your favorite cold brew or kombucha might be brewed right here in the US, but the aluminum cans or glass bottles it’s packaged in could be sourced from abroad. If those materials are hit with a new tariff, it increases costs for the brand. These added costs often move down the line—from distributors to retailers, to workplace programs, and even the end consumer. What starts as a small change at the supply level can ripple all the way to your office pantry.

How Tariffs Could Impact Workplace Food Service?

I predict these new tariffs are likely to affect our industry in two significant ways:

1. Increased Equipment Prices: Importing essential parts from abroad could become more costly, meaning prices for office pantry equipment may rise. 
2. Higher Product Costs: Packaging and ingredients sourced internationally may also see price increases. Although Crafty and many of our partners proudly prioritize local sourcing, the reality is that the entire value chain often crosses borders. Think of the cocoa in your energy bar or the beans in your morning coffee. 

This combination of factors could lead to unpredictable pricing and potential budget constraints, especially as public and private companies alike respond to market volatility. In particular, when markets perform poorly, businesses tend to tighten their budgets, which could result in fewer items being ordered due to higher costs.

5 Ways Workplace Leaders Can Stay Ahead

Here are some proactive steps you can take today to help mitigate the impact:

1. Track Product Prices: Visibility is key. Stay informed on price changes as they happen. Make sure your vendors are transparent and communicate regularly about any adjustments.
2. Request Proof of Price Increases: Unfortunately, some vendors may use the situation to disproportionately raise prices. Ask for documentation that supports the increases to ensure they are justified.
3. Be Flexible with Product Choices: Plan to swap products as necessary. For example, aluminum cans may be affected by tariffs on Chinese imports. Bevi machines and kegerators might offer cost-effective alternatives for your beverage service.
4. Focus on Locally Made Products: For example, U.S.-made dairy products like Chobani are less likely to be impacted. Consider leaning into locally sourced items wherever possible.

5. Consider Refurbished Equipment: As a temporary solution, refurbished equipment can help you navigate higher costs while maintaining operational efficiency. Once prices stabilize, reassess your options for purchasing new.

Conclusion

At Crafty, we are committed to helping our clients navigate these changes with flexibility and foresight. As more information becomes available, we will continue to share updates and guidance. For now, keeping an agile mindset and staying informed are essential strategies to maintain business continuity and cost control.

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