US Tariffs on Egg Imports

U.S. President Donald Trump’s new tariffs could apply to eggs being imported to ease a supply shortage, Agriculture Secretary Brooke Rollins said on Thursday, a move that industry experts said could boost prices just as they have started to decline from record highs.

Background

Rollins said in a Fox News interview that tariffs on egg imports were possible and negotiations with affected countries were ongoing. On Wednesday, Trump announced sweeping tariffs that have been mostly criticized by agricultural and food groups for their potential to shrink markets for farmers and raise consumer prices.

The U.S. has increased imports of eggs from Turkey, Brazil, and South Korea in an attempt to increase supplies amid an ongoing bird flu outbreak that has killed nearly 170 million chickens, turkeys, and other birds since 2022.

A new U.S. baseline tariff of 10% would affect imports from Turkey and Brazil, and South Korea is facing a 26% tariff, according to figures released by the White House.

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Impact on Egg Prices

If levies are imposed on eggs, manufacturers that import them for processing into food products would either need to absorb the cost or pass it on to consumers, said Greg Tyler, CEO of the USA Poultry & Egg Export Council industry group.

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“You will see increases in processed egg prices here in the United States as a result,” he said.

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Current Market Situation

The U.S. Department of Agriculture did not immediately respond to a request for comment.

Egg prices have declined in recent weeks from all-time highs, though the wholesale price is still up 60% from this time last year at $3 per dozen, according to USDA data. Weaker demand and a lull in new cases of bird flu have helped cool prices, analysts said.

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Uncertainty and Response

The agriculture secretary, however, said tariffs would cause short-term uncertainty.

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“I’m not going to sit here and say, ‘Oh, everything’s going to be perfect and the prices are going to come down tomorrow,’ because this is an uncertain time,” Rollins told Fox News’ Maria Bartiromo.

The Brazilian government said it was evaluating its response to Trump’s tariffs, while South Korea ordered emergency support measures for affected industries.

Imported eggs are generally brought into the U.S. on ships, transported to processing facilities, and then unloaded by hand, said Brian Moscogiuri, global trade strategist for egg supplier Eggs Unlimited.

“There’s more costs associated with the imports already, and now you add tariffs on top it,” he said. “It makes everything more costly and makes imports that much less likely to have a major impact.”

The U.S. imported more than 1.6 million dozen consumer-grade chicken eggs in January and February, mostly from Turkey, compared with none a year earlier, USDA data show.

Turkey may not be as big of a supplier going forward because of tariffs and its own outbreak of bird flu, Moscogiuri said.

Conclusion

The imposition of tariffs on egg imports by the U.S. government is likely to have significant effects on the egg market, including increased prices for consumers. The ongoing bird flu outbreak and resulting supply shortages have already driven prices up, and the addition of tariffs will only exacerbate the situation. As the situation continues to unfold, it remains to be seen how the various stakeholders, including the U.S. government, egg producers, and consumers, will be impacted.

FAQs

A: Egg prices have declined in recent weeks from all-time highs, though the wholesale price is still up 60% from this time last year at $3 per dozen, according to USDA data.

Q: How will the tariffs on egg imports affect consumers?

A: The tariffs will likely increase the cost of eggs for consumers, as manufacturers may pass on the additional cost to consumers or absorb the cost themselves, potentially reducing their profit margins.

Q: What is the impact of the bird flu outbreak on the egg market?

A: The bird flu outbreak has resulted in a significant reduction in the number of chickens, turkeys, and other birds, leading to supply shortages and increased prices for eggs.