Tariffs on imported baby formula, suspended due to a shortage earlier this year, are set to be reintroduced in the new year.
A crippling supply shortage in the United States made formula difficult to obtain for many parents, resulting in Congress temporarily waiving tariffs on imports in order to increase the supply. Lobbying from the U.S. dairy industry, which produces key ingredients for formula, helped convince Congress not to renew the tariff waivers in 2023, the Wall Street Journal reported. Dairy lobbyists argued that production had increased enough to where the waivers were no longer necessary.
BABY FORMULA MANUFACTURERS EXPLOITED HEALTHCARE DATA FOR PROFIT DURING SHORTAGE
A White House spokesman told the outlet that the tariff waivers had doubled the number of manufacturers selling to the U.S. Though domestic production has somewhat stabilized, it is unlikely that the market is ready for such a drastic cut in supply.
Erik Peterson, managing director for consulting firm Kearney’s Global Policy Business Council, warned that reimposing tariffs could make formula both harder to find and more expensive.
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Even in December, stores were still reporting shortages in baby formula. Stores that do have formula report having less than pre-pandemic levels, and less diversity in brands.
Several baby formula brands have come under fire for questionable behavior during the shortage, including the predatory use of consumer data to send out samples of baby formula to customers who didn’t have any children.
