Tariffs hurting America’s food service equipment manufacturers, says NAFEM

Tariffs on Chinese imports, along with tariffs on imported steel and aluminum, are making it more expensive to produce the commercial food service equipment and supplies, according to a recent survey by the Chicago-based North American Association of Food Equipment Manufacturers (NAFEM).

More than 80 percent of respondents to the survey reported that the tariffs have negatively affected their businesses:

• 50 percent said tariffs on Chinese imports are affecting their ability to compete, and 53 percent said these tariffs are hurting sales.
• 56 percent said that tariffs on imported steel and aluminum have impaired their ability to compete, and 47 percent said these tariffs are hurting sales.

The majority of NAFEM members surveyed also reported that tariffs on Chinese imports and imported steel and aluminum are raising material costs by 6 to 15 percent.

“The survey clearly demonstrates that tariffs are negatively impacting U.S. businesses, which doesn’t bode well for U.S. jobs and a strong economy,” said NAFEM President Joe Carlson, CFSP, president, Lakeside Mfg. Inc., Milwaukee. “Trade wars have no winners. Now is the time for talks, not tariffs. We’re encouraged by recent congressional action to work toward a solution to unfair trade practices. We need a solution that does not include tariffs that ultimately hurt American workers and consumers.”

Food service equipment is a $13.5 billion U.S. industry. Approximately 60 percent of NAFEM members are small to medium-size businesses.