Trump’s Tariffs: How They Will Impact the Hospitality & Restaurant Industry – And How You Can Prepare

Introduction: The New Tariffs Are Here – Is Your Business Ready?

In March 2025, former President Donald Trump imposed a new wave of tariffs on imports from China, Mexico, Canada, and the European Union. These tariffs – some as high as 200% – are sending shockwaves through the hospitality, restaurant, and hotel industries, increasing food and beverage costs, disrupting supply chains, and even impacting capital projects.

For hoteliers and restaurateurs, the consequences will be significant:

• Higher operational costs due to rising prices on imported food, beverages, and materials.

• Delays and cost overruns on renovation and construction projects.

• Reduced profit margins as operators struggle to absorb increased expenses.

But there’s good news: Vanguard Food & Beverage Thynk Tank is here to help you navigate these challenges, offering strategic insights, cost-saving solutions, and practical tools to protect your margins and keep your business profitable.

💥 The Impact of Trump’s Tariffs on Food & Beverage Costs

The tariffs directly target key imports, including meat, seafood, produce, and alcoholic beverages, all of which are integral to hotel and restaurant operations. Here’s a breakdown of the most affected products:

🍖 Meat & Poultry

• Beef: A 10% tariff on beef from China will increase prices on steaks, burgers, and beef entrees. With 12% of the U.S. beef supply imported, expect higher prices across menus.

• Pork: A 10% tariff on pork (including bacon and sausage) will raise costs, although only 4% of U.S. pork is imported. Nonetheless, the tariffs could cause market-wide price hikes.

• Chicken: With a 15% tariff on Chinese poultry, prices for imported chicken will rise. Although most U.S. chicken is domestically sourced, any dependence on imported poultry could become more costly.

🥑 Produce & Dairy

• Avocados, Bell Peppers, Tomatoes, and Potatoes: The 25% tariff on imports from Mexico will raise the cost of fresh produce. Since Mexico supplies the majority of these items, the tariffs will significantly increase expenses for salads, sides, and garnishes.

• Dairy Products: The 10% tariff on Chinese dairy imports will affect cheese, butter, and milk, which are essential for breakfast buffets, catering, and baked goods.

🐟 Seafood

• Salmon: With 96% of imported salmon coming from Canada, the 25% tariff will significantly impact seafood menus in hotels and restaurants. Expect higher costs for salmon dishes and lox in buffets.

• Aquatic Products: A 10% tariff on seafood from China will increase the prices of shrimp, tilapia, and other popular seafood items.

🍷 Alcoholic Beverages

• Wine, Champagne, Cognac, and Whiskey: A 200% tariff on EU alcohol imports will drastically increase costs for hotel bars, restaurants, and special events. Imported wines, craft cocktails, and fine spirits will become significantly more expensive.

• Beer & Vodka: EU-imported beer and vodka will also face up to 200% tariffs, forcing bars and hotels to rethink their beverage programs.

  
  

  

  
  

📉 How Tariffs Will Impact Hotel Capital Projects

The tariffs won’t just hit your food and beverage costs—they’ll also significantly affect hotel capital projects. If you’re planning renovations, expansions, or upgrades, you need to brace for increased material costs, supply chain disruptions, and project delays.

🛠️ 1. Higher Costs for Construction Materials

Many essential construction materials are imported, and with the new tariffs, hoteliers can expect:

• Increased steel and aluminum costs: With tariffs on Chinese imports, structural and decorative metalwork prices will rise, affecting everything from HVAC systems to furniture.

• Elevated lumber and wood product costs: Tariffs on Canadian wood imports will lead to higher costs for flooring, paneling, and furniture used in guest room and common area renovations.

• Higher costs on décor and FF&E: Imported lighting, textiles, and furniture will be significantly more expensive, inflating the budget for lobby redesigns, guest room renovations, and conference space upgrades.

🚧 2. Delays in Renovation Timelines

• Tariffs will disrupt supply chains, causing longer lead times for imported construction materials.

• Hotel projects that rely on imported equipment (kitchen appliances, electronics, and furnishings) will experience shipping delays and possible backorders.

💸 3. Budget Overruns

• With rising costs for materials, hotel capital projects will face budget overruns.

• Projects that were financially feasible pre-tariffs may now require reassessment or scaling back.

✅ How Hoteliers & Restaurateurs Can Prepare

While the tariffs pose challenges, Vanguard Food & Beverage Thynk Tank offers solutions and strategies to help you manage costs, maintain profitability, and keep your capital projects on track.

🔥 1. Strategic Procurement & Sourcing

• Shift to domestic suppliers: Reduce tariff exposure by sourcing locally produced materials and ingredients.

• Optimize purchasing contracts: Vanguard experts can help you negotiate better contracts with vendors to secure stable pricing.

• Use bulk buying and co-op purchasing to gain volume discounts.

💡 2. Cost-Saving Menu Engineering

• Menu optimization: Vanguard helps you redesign your menus to highlight domestic and seasonal items with lower tariff exposure.

• Portion control & waste reduction: Our experts will help you implement portion control strategies to reduce food waste and maintain profitability.

• Cross-utilization of ingredients to maximize inventory efficiency.

🛠️ 3. Capital Project Cost Control

• Material alternatives: Vanguard consultants can help you source alternative, domestic materials that are not subject to tariffs.

• Project prioritization: We can assist in reassessing and prioritizing capital projects to minimize risk and cost escalation.

• Contingency planning: Our team will help you create contingency plans for potential delays and budget overruns.

🚀 4. Education & Training

• Vanguard Food & Beverage Thynk Tank offers webinars, workshops, and one-on-one consultations to help you navigate tariff impacts with confidence.

• Learn industry best practices for controlling costs and optimizing operations.

🛠️ Vanguard Food & Beverage Thynk Tank: Your Partner in Tariff-Proofing Your Business

At Vanguard Food & Beverage Thynk Tank, we specialize in helping hoteliers and restaurateurs overcome challenges by:

• Reducing costs with strategic procurement and menu engineering.

• Improving operations through efficiency programs and waste reduction.

• Supporting capital projects by identifying cost-saving alternatives and minimizing tariff impacts.

  
  

📝 Take Action: Register with Vanguard Today

The impact of Trump’s tariffs on the hospitality industry is unavoidable—but with the right strategies, you can protect your margins, manage capital project costs, and remain competitive.

👉 Register today with Vanguard Food & Beverage Thynk Tank to gain access to:

• Exclusive resources

• Industry insights

• Expert support

  
  

✅ Register Now and prepare your business to thrive despite the challenges of the new tariffs.

🔥 Stay Ahead of the Tariff Impact

With Vanguard Food & Beverage Thynk Tank by your side, you’ll have the strategies, knowledge, and support needed to turn these challenges into opportunities for growth and resilience.

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