NextFin news, On Friday, September 19, 2025, the United States implemented new tariffs and import restrictions on organic sugar, a move anticipated to significantly raise the prices of organic food products across the country. This policy change affects the importation of organic sugar, a key ingredient used by most US organic food manufacturers.
More than 90% of the organic sugar used by US manufacturers is imported, primarily from countries like Brazil, which supplies about 40% of the US organic sugar market. The Trump administration imposed steep tariffs on these imports in August 2025, and starting October 1, 2025, high-tier duties on most organic sugar imports beyond the World Trade Organization (WTO) minimum quota took effect.
The US Department of Agriculture (USDA) has set the annual quota for duty-free specialty sugar imports to zero for this year, meaning all organic sugar imports beyond the WTO minimum of 1,825 tons will be subject to high out-of-quota tariffs. Additionally, a 50% tariff on Brazilian organic sugar imports has been introduced.
The USDA stated that these restrictions aim to support the domestic US sugar industry. However, the US produces almost no organic sugar domestically, with only one organic sugar farm and mill in operation. Converting conventional farms to organic production requires at least three years, making domestic supply insufficient to meet demand.
Industry representatives, including Britt Lundgren of organic yogurt maker Stonyfield and Tom Chapman, co-CEO of the Organic Trade Association, have expressed concerns that the tariffs and import limits will raise organic sugar prices by an estimated 30% or more. This increase will cascade into higher costs for a wide range of organic products, from granola and yogurt to cookies and sweeteners.
Manufacturers warn that the increased costs may force some to raise prices, reduce production, or potentially go out of business, especially smaller companies with limited profit margins. Nigel Willerton, president of Whole Earth Brands, anticipates a 100% increase in organic sugar costs, which will affect prices in major supermarkets and natural food stores.
The USDA has not announced additional measures to support organic sugar growers or expand domestic production capacity. Florida Crystals Corporation, the only US organic sugar producer, currently supplies about 8% of the market and views the policy as potentially encouraging increased domestic production if maintained long-term.
Overall, the new tariffs and import restrictions on organic sugar, effective as of October 1, 2025, are expected to lead to higher prices for organic foods nationwide, impacting manufacturers, retailers, and consumers.
Source: Associated Press, reporting from Sioux Falls, South Dakota, September 19, 2025. Original reporting by Sarah Raza, The Tribune-Democrat and The Derrick.
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