Last week, Treasury Secretary Scott Bessent announced “substantial progress” in US-China trade talks in Geneva, targeting a deal by May 12 to reduce tariffs on Chinese food ingredients like soy and spices, per Reuters. Current 145% tariffs have inflated costs for Americas’ manufacturers, disrupting supply chains for snacks and sauces. A deal could lower prices by 10-15%, but unresolved issues, like agricultural subsidies, keep markets on edge. Brazil and Argentina may lose export share if US goods flood China, reshaping trade flows. Buyers should diversify suppliers and monitor summit outcomes to manage risks. Smaller firms, hit hardest by tariff costs, are exploring Canadian and Mexican alternatives. The talks highlight the fragility of global ingredient trade amid geopolitical tensions.

At BTG, we’re tracking these negotiations to ensure stable sourcing. Contact us to secure cost-effective ingredient supplies in 2025’s shifting trade landscape.