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New tariffs on specialty sugar could make organic food prices skyrocket

By Associated Press

New tariffs on specialty sugar could make organic food prices skyrocket

More than 90% of organic sugar used by U.S. manufacturers is imported. The price of that product increased in August when the Trump administration imposed steep trade tariffs, and will rise even more when high-tier duties on most organic sugar imports take effect Oct. 1.

The result, according to the Organic Trade Association, is that the price of organic sugar is expected to soar by an average of 30%, increasing costs of producing most organic foods -- everything from yogurt to cookies.

Each year, the U.S. imports 1,825 tons (1,656 metric tons) of specialty sugar because it's required under a World Trade Organization agreement. But demand for organic sugar far exceeds that amount, so the U.S. Department of Agriculture sets an annual quota for the amount of specialty sugar that can be imported into the U.S. duty-free.

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