Tariffs are back in the news, and they were in place for a three-day stretch in early March, which has thrown importers for a loop. And FDA has postponed the food traceability rule by 2½ years.
FDA delays traceability rule
Last fall, an FDA spokesperson told the produce industry not to expect a delay in the January 2026 enforcement of the Food Traceability Rule.
But this week, FDA announced just that. The agency plans to extend the compliance date by 30 months, noting that it does not intend to change its requirements.
Several buyer groups have endorsed the delay. FMI said, “More time is needed for compliance with the overly complex rule to ensure it does not unnecessarily increase food costs and burden the food supply chain.”
Similarly, the National Grocers Association, said, “Disproportionately impacting smaller grocers, the traceability rule’s original timeline was nearly impossible to meet across the vast and dynamic food system. It quickly added exorbitant costs and operational complexity, threatening grocers’ ability to serve their communities effectively.”
Elevated Foods
Well-known retail veteran Paul Kneeland found a new position in the industry: leading sales for climate-smart start-up Elevated Foods. The company received a $20 million USDA grant under the Partnerships for Climate-Smart Commodities program, which it will use to help grower-partners implement climate-smart production practices including no- and reduced-till, nutrient management, and soil carbon amendment activities on a large-scale.
Kneeland said it will help small- and medium-sized growers be able to supply large buying groups, allow those groups to carry fresh fruits and vegetables from more local growers, and help differentiate retailers in the marketplace. The Rooted Journal ran a long piece explaining the project and the vision of founder Steve Brazeel.
Tariffs were real briefly
The 25 percent tariffs on Mexican and Canadian imports seem like they have been delayed several times and never in place, while U.S. leaders negotiate with their counterparts in the other USMCA countries, but from March 4-6, they were in place.
Dante Galeazzi, president and CEO of the Texas International Produce Association, said they have caused his members confusion and headaches, and he has concerns for what could happen if they go into effect April 2, as proposed.
Craig Slate, president and CEO of SunFed, wrote a column this week saying if implemented, tariffs will not achieve their goal when it comes to fresh produce, and consumers will see higher prices and fewer selections.
It feels like a “hope for the best but prepare for the worst” situation.
