The supply chain rollercoaster isn’t slowing down anytime soon. If anything, it’s about to hit another steep drop. With Trump’s newly announced tariffs on China, Canada, and Mexico, the cost of importing raw materials and finished goods is about to spike—again. And if history tells us anything, this is just the beginning.
For food and beverage brands, that means two things: rising costs and shrinking supplier options. Whether you’re sourcing packaging, ingredients, or co-manufacturing partners, the global trade landscape is shifting fast. And companies that don’t adapt now might find themselves scrambling when the real disruptions hit.
Why This Matters More Than Ever
A 10% tariff on Chinese imports and 25% tariffs on goods from Canada and Mexico could hit the food industry hard. Many brands rely on ingredients from these regions, from Mexican avocados to Canadian dairy to Chinese food additives. This isn’t just a pricing issue—it’s a sourcing one.
Take eggs, for example. The industry is still recovering from bird flu outbreaks that wiped out millions of hens, leading to shortages and skyrocketing prices. Now, companies like Cal-Maine Foods are struggling to keep up with demand. The same goes for cocoa. Supply issues in West Africa are making chocolate more expensive, forcing brands like Hershey and Mars to either absorb the cost or push consumers toward non-chocolate confections.
Now add tariffs to the mix. It’s a recipe for tighter margins, reformulated products, and brands scrambling to find alternative suppliers—fast.
The Search for New Sourcing Strategies
With supply chain disruptions becoming the norm, brands are rethinking where they get their ingredients and packaging. Some are moving production out of China entirely, following the lead of companies like Yeti, which is shifting 50% of its drinkware capacity elsewhere by 2025. E.l.f. Beauty, which once sourced 99% of its products from China, has brought that number down to 80%.
The trend is clear: brands are looking for trade-friendly, cost-effective alternatives. And for food and beverage companies, this could mean exploring untapped manufacturing hubs in regions like Turkey, Europe, and South America. The challenge? Finding the right partners without spending months digging through trade shows and cold emails.
How Chapter Foods Can Help
If you’re looking for a supplier or co-manufacturer that isn’t affected by the latest round of tariffs, we can help. Chapter Foods connects brands with vetted manufacturers in Turkey and beyond—regions known for their high-quality ingredients, strong production standards, and trade-friendly agreements with the U.S. (let’s say for now to be honest).
The food industry can’t afford to wait for the next disruption. The brands that thrive will be the ones that get ahead of the curve, secure new partners early, and build flexibility into their supply chains. If that sounds like a challenge, you don’t have to do it alone.
Let’s find a way forward—together. Reach out to us, and we’ll help you navigate the next chapter of your supply chain.
Can Koyuncu, Co-Founder & CMO