What's the Tariff on Sugar (Raw)?
Raw cane sugar from Brazil, Dominican Republic, Mexico.
Current Tariff Rate
15%
Pre-2025 Rate
1.5%
Rate Increase
+13.5pp
Price Impact
+15%
+$0.64
Real-World Price Impact
Before Tariffs
$4.29
5 lb bag sugar
After Tariffs
$4.93
5 lb bag sugar
That's $0.64 more per unit โ a 15% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary โ manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Sugar is perhaps America's most politically protected commodity, with a baroque tariff-rate quota system that has kept US sugar prices at roughly double the world price for decades. The new 15% tariff stacks on top of this existing protection, creating an almost absurd level of market distortion. The US sugar program allocates import quotas to 40+ countries under a system largely unchanged since the 1980s. Brazil, the world's largest sugar producer, is perpetually constrained by these quotas despite producing sugar at half the US cost. The additional tariff pushes raw sugar costs even higher, benefiting a small number of politically connected domestic sugar producers โ primarily in Florida's Everglades and Louisiana โ at the expense of every American who consumes processed food. The candy and beverage industries have long lobbied against sugar protection, with some manufacturers relocating to Canada and Mexico specifically to access world-priced sugar.
๐ฆ Supply Chain
Primary Origin
Brazil
Made in USA
80%
Import Volume
.4B
Alternatives
Domestic beet sugar (Minnesota, North Dakota)
๐ Tariff Timeline
1981
Modern sugar TRQ system established
15.36ยข/kg2008
Sugar Reform Act maintains price supports
TRQ system2024
World sugar price hits 12-year high
1.5% + TRQ2025-Feb
Section 122 adds 15% on top of existing TRQ duties
15% + TRQ๐ฅ Consumer Impact
Households Affected
130M
Annual Cost Per Household
2
๐ก Did You Know?
- โขUS sugar prices have been roughly double the world price for over 30 years due to import quotas
- โขThe Fanjul family of Florida controls roughly one-third of US sugar production and is among the largest political donors in agriculture
- โขLife Savers candy moved production from Michigan to Canada in 2002 specifically to access cheaper world-priced sugar
Tariff Details
- HTS Code
- 1701.14
- Current Rate
- 15%
- Pre-2025 Rate
- 1.5%
- Tariff Type
- Section 122 + TRQ
Legal Authority
Section 122 + TRQ
Effective: 2025
Tariff imposed under presidential trade authority
The tariff on Sugar (Raw) is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 15% tariff on Sugar (Raw) is paid by American importers โ US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- โ The foreign seller receives the same price as before
- โ The US importer pays 15% of the customs value to CBP
- โ The retailer marks up the higher landed cost
- โ You pay more at the register: $4.29 โ $4.93
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