Agriculture

What's the Tariff on Sugar (Raw)?

Raw cane sugar from Brazil, Dominican Republic, Mexico.

๐Ÿ’ก
The 15% tariff on Sugar (Raw) is paid by American importers, not foreign manufacturers. Your 5 lb bag sugar now costs $4.93 instead of $4.29 โ€” that's $0.64 more, or 15% of the sticker price going directly to tariff taxes.

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

โ†’

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.

๐Ÿ“ฆ Supply Chain

Primary Origin

Brazil

Made in USA

80%

Import Volume

.4B

Alternatives

Domestic beet sugar (Minnesota, North Dakota)

๐Ÿ“… Tariff Timeline

1981

Modern sugar TRQ system established

15.36ยข/kg

2008

Sugar Reform Act maintains price supports

TRQ system

2024

World sugar price hits 12-year high

1.5% + TRQ

2025-Feb

Section 122 adds 15% on top of existing TRQ duties

15% + TRQ

๐Ÿ‘ฅ Consumer Impact

Households Affected

130M

Annual Cost Per Household

2

๐Ÿ’ก Did You Know?

  • โ€ขUS sugar prices have been roughly double the world price for over 30 years due to import quotas
  • โ€ขThe Fanjul family of Florida controls roughly one-third of US sugar production and is among the largest political donors in agriculture
  • โ€ขLife 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.

  • โœ“ The foreign seller receives the same price as before
  • โœ“ The US importer pays 15% of the customs value to CBP
  • โœ“ The retailer marks up the higher landed cost
  • โœ“ You pay more at the register: $4.29 โ†’ $4.93

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