South Africa loses 10 million tons of food each year, while hunger and inflation rise.

Our international food trade, and national food supply chain resilience, can both be transformed through expansion of the nation’s temperature-controlled food logistics network with new future-facing cold chain facilities, emerging technologies and specialist skills.

Now is the time for Ministers to stop overlooking this vital industry and start to reflect its national importance in economic policy.

Progress in implementing the African Continental Free Trade Agreement (AfCFTA) is promising, bringing huge as-yet untapped potential for intra-continental trade. And as global trading patterns shift, an opportunity is emerging for South African ports to provide a vibrant gateway to the world for importers and exporters of temperature-sensitive food and pharmaceutical goods. Increasing our nation’s cold storage and refrigerated transportation capacity is essential to enabling greater flows of temperature-controlled products within and between countries, and to strengthening South Africa’s trade relations through AfCFTA and globally.

Increasing cold chain capacity will bring the necessary improvements needed for the resilience and efficacy of our national food supply, a challenging proposition in our changing world.

On a daily basis, South Africa’s cold chain operators solve problems with determination and creativity make remarkable adaptations in order to keep food supplies consistent in the face of extreme challenges. Recent examples include the Komatiport Border Post closures due to political unrest, total loss of energy supply in periods of loadshedding, and major ongoing port disruptions.

With fast-changing populations, rising geopolitical tensions and a warming world, extreme disruptions to global and regional food supply chains are increasing. The estimated 10 million tons of food that go to waste in South Africa every year equates to a third of what is produced. Increasing cold chain capacity will not only help cut waste by allowing more fresh and frozen food to be stored and transported, but will also enable food chain adaptations and flexibility in times of disruption — crucial to achieving any level of resilience for South Africa’s future food supply.

Our nation’s temperature-controlled logistics operators are investing to increase capacity through new facilities, leading-edge cold chain technologies, and collaborative partnerships. The new Commercial Cold Holdings (CCH) Greenbushes cold store in Gqeberha, which is now servicing Eastern Cape fruit exports and frozen imports, is a prime example.

However, all too often temperature-controlled logistics businesses investment in capacity is hamstrung by lack of support in government policy. Ministers must drive forward key changes to help unlock the cold chain growth that is vital for a robust and resilient future for South Africa.

An urgent priority is to improve energy security for the temperature-controlled warehouses where chilled and frozen food is stored. If these facilities cannot refrigerate, the fresh and frozen food supply chain breaks down. At the peak of the energy crisis in 2023, some cold storage operators were subject to daily load-shedding. Government policy must prioritize the energy supply to cold storage facilities before the next energy crisis.

For longer-term food chain energy resilience, government can remove unnecessary and frustrating planning barriers to establishing onsite renewable energy generation at cold storage facilities. Ministers should instead seek opportunities to collaborate with businesses and encourage this type of sustainable investment through, for example, extensions to Renewable Energy Incentives and provision of tax credits.

Similarly, our nation needs a collaborative, government-industry approach to catalyse the sharp increase in skilled people that is needed to operate an expanded cold chain industry. Training and development of temperature-controlled logistics technicians should combine the requirements of today with the cold chain roles of the future in, for example, automation and AI.

With these actions and effective collaboration between government and business, South Africa can become a leading ‘food basket of the world’.

Expanding our nation’s cold chain network will boost the economy and jobs; improve the safe availability food; reduce food waste; and improve access to temperature-sensitive medical treatments. The private sector is already stepping up. Now, government must do the same. The cold chain is not just a logistics issue, it is a national strategic imperative. If Ministers act with urgency, South Africa will not only feed its people and its continent, but also lead a global shift in sustainable trade and food resilience.

Paul Matthew will host business leaders to discuss the future of Africa’s temperature-controlled logistics at the GCCA Africa Cold Chain Conference on 20-21 July in Durban. 

By Pat Soldano

 Keeping Successful Family-Owned Cold Chain Businesses Strong, Creating Tax Policies to Help Middle-Tier Earners Will Continue the American Dream

There’s a belief that “the rich” don’t pay their fair share of taxes. This belief ensnares successful families and the family businesses they own. The results of this bias are movements to tax the rich, tax the billionaires, and generally find ways to tax the country’s top earners.

This group is a politically easy target. In the imagination of voters, taxpayers, the media, and the populace at large they are often portrayed as the bad guys. This includes successful family-owned businesses in the global cold chain industry.

To be sure, there is unfairness in our progressive tax system and the growing wealth gap in our country is concerning, but the reality of who pays what, and how much, may come as a surprise: The top 1% of earners pay 45.8% of all federal income taxes!

Internal Revenue Service data for the tax year 2022 (most recent statistics) shows the U.S. federal income tax system continues to show the highest-income earners pay the highest average personal income tax rates. Little consideration is given to family-owned businesses, the country’s largest private employer. Research shows that some 80% of family-owned businesses are structured not as traditional corporations, but as pass-through entities.

Current law helps reduce the tax burden on owners of pass-through entities, like sole proprietorships, partnerships, and LLCs, through a 20% deduction on qualified business income (section 199A).  This brings the top 37% individual rate on such income down to 29.6%, which is closer to the 21% corporate rate (plus shareholder taxes on dividends they received).  But the section 199A deduction expires at the end of this year if Congress fails to extend it or make it permanent.

These taxpayers, particularly those making between $178,611 and $261,591, really feel the pinch when it comes time to write big checks to the IRS. They pay an average income tax rate of 14.3 percent—almost five times the rate paid by taxpayers in the bottom half.

The Top 1 Percent: Easy Targets

No one feels sorry for the top one percent of earners, but facts are facts. The top one percent of earners in the United States, those that make $663,164 or more, pay a tax rate (26.1%) seven times more than the bottom 50% of taxpayers, according to IRS 2023 figures. Another fact from the IRS: the top one percent of earners paid $864 billion in income taxes while the bottom 90% paid $599 billion.

Of course, all of us pay more than federal taxes. But the total federal, state, and local taxes paid as a share of income is still higher for those at the top than for those at the bottom.

No one is suggesting the government penalize our lowest earners with higher personal taxes. Our country’s lowest earners, the bottom 50% who make under $50,399 a year, paid an average federal income tax rate in 2022 (most recent statistics available) of 3.7%.

Contrasting that, in 2021, the top 5% of earners, those with incomes of $252,840 and above, many being family-owned businesses using traditional pass-through entity structures, paid over $1.4 trillion in income taxes, or about 66% of the national total.

If you include the top 10% of earners, everyone who made $169,800 or above, the figure rises to $1.7 trillion, or 76% of the total. This means the top 50% of earners in this country contributed 97.7% of federal income tax revenue.

Let’s not forget, the top 1% of earners pay 45.8% of all federal income taxes. So, our tax writers, those people we elect and place on Capitol Hill, have a tough needle to thread when it comes to income taxes and the cost of running our federal government. Simply, we spend a lot more than we bring in.

The federal government generated $4.47 trillion in revenue in fiscal year 2023, nearly half of which came from taxing people on their incomes. Individual income taxes in FY 2023 totaled $2.18 trillion, or $6,499 per person.

But, in Fiscal Year 2024, the U.S. federal government spent approximately $6.8 trillion, or roughly 25% of the nation’s gross domestic product (GDP).  Each year, this leaves something between $1.5 trillion to over $2 trillion in an annual budget deficit to be covered by loans in the form of Treasury notes.

The total budget deficit will continue to grow massively (approaching $37 trillion today) if lawmakers cannot find cuts in spending to make up for the expected continuation of the lower tax rates approved in the 2017 Tax Cuts and Jobs Act.

But Where to Cut?

There are six “buckets” lawmakers are looking at. They are: Social Security (22% of spending), Medicare (14% of spending), Defense (13% of spending), Interest payments (13% of spending), Other Mandatory Spending (16% of spending), Non-Defense Discretionary Spending (15% of spending).

Hence, the search is on to find “soft targets” to tax, like successful high earners (i.e., family businesses), and easy areas to cut waste and services, or a combination of all of the above. The one argument lost in this economic narrative is: How can we incentivize earners making $160,000 a year or more to grow their businesses, make more money, and move up the tax ladder?

How can we move earners in the bottom 50% to move into the top 50% percentile of taxpayers through entrepreneurship, business start-ups, and hard work? And how can we support the family-owned businesses and successful individuals who create good-paying jobs and economic opportunity in the communities they serve?

This missing factor in the equation of taxation and spending cuts is: What are lawmakers doing to spark this kind of innovation and growth? We cannot create a strong economic engine, fueled by family businesses, by a diet of taxation and cost cutting alone.

One answer is to find ways of creating the next generation of successful family-owned and operated businesses. This typically starts with capitalizing good ideas that grow and last, the core to America’s success. We don’t want policies that choke the successful, the hardworking taxpayers who pay the most taxes, especially those in the global cold chain industry. Congress can start by focusing the pending budget reconciliation bill on tax policies that maintain current tax rates, especially on family-owned businesses, and foster economic growth through policies that reward research, innovation, and investment in the United States.

We want policies that keep the family-business sector strong and healthy, while at the same time helping those in the middle tax brackets move up the economic ladder, so they can attain their own American Dream and take our country into a prosperous future.

Pat Soldano, President of Family Enterprise USA, and the Policy Taxation Group, both are non-partisan organizations advocating for family enterprises of all sizes. Both groups are organizers of the Congressional Family Business Caucus and of the Family Enterprise USA Annual Family Business Survey.

Seven House Members Meet with Attendees to Hear Critical Issues affecting Family-Owned Businesses; New Research Revealed

By Pat Soldano

Recently, I spent several days on Capitol Hill attending this year’s first event with members of the Congressional Family Business Caucus.

Over 70 family business leaders and others attended the gathering, along with seven Congressional House Members and all this as the country was on the verge of having no budget, the stock market shrinking, and new tariffs being added, or dropped, daily.

The Congressional Family Business Caucus was formed three years ago and is a bipartisan, educational Caucus intended to bring awareness to the issues facing family businesses in the global cold chain supply industry, and all family-owned businesses.

This meeting was focused on women-owned family businesses and featured eight women-owned family business owners, as well as presentations on latest research from our Family Enterprise USA Annual Family Business Survey, and new consumer attitude research from our chief communications strategist and pollster, Dr. Frank Luntz.

The seven House members who stopped by to speak with, or greet, the attendees were Rep. Carol Miller (R-WV), Stacey Plaskett, (D-VI-AL), Brad Sherman, (D-CA), and Brad Schneider, (D-Ill). The others who attended and listened to family-owned business stories were Rep. Chuck Fleischmann (R-TN), Rep. Mariannette Miller-Meeks (R-IA), Rep. Pete Stauber (R-MN).

Last year, the Caucus was co-chaired by Reps. Jodey Arrington (R-Texas), Brad Schneider (D-Ill.), Claudia Tenney (R-N.Y.) and Henry Cuellar (D-Texas). It has approximately 50 members and, with each new Congress it is hopeful that co-chairs will be announced soon.

This meeting was designed to educate members of Congress on the strength of women-owned family businesses, and the special challenges they face.

Women-owned businesses represent nearly 40% of all U.S. businesses — more than 14 million businesses in total – and account for $2.7 trillion in revenue, according to Wells Fargo Bank’s 2024 “Impact of Women-Owned Business Report.”

The women-owned family businesses that spoke at the meeting started with Debbie McKee, the namesake of Little Debbie Cakes, based in Chattanooga, Tenn.  She was followed by Kimberly Smith, President of Pipeline Development Company, Strongsville, Ohio, Angela Simmons, owner and manager of ABS Legacy Partners, and Policy and Taxation Group Board member, and Rosana Biondo, President, Mark One, in Kansas City.

These speakers were followed by Cheryl Osborn, founder of Casco Contractors, Irvine, Calif., Meghan Hanna, Evolve Wellness, based in Orange County, Calif., Bridget Herdman, Herdman Architecture & Design, Corona del Mar, Calif., and Junette McCarthy of McCarthy Wealth, Newport Beach, Calif.

Others who spoke at the event were Ken Monroe, President of Holt of California, Stockton, California, and Robert Mancuso, Chief Executive Officer, Capri Capital Partners, Palm Beach, Florida.

Off and Running

One of the main features of the Congressional Family Business Caucus is to get a reading on the current political “state of play” on Capitol Hill and then to meet with specific House Members in their chambers.

The starting point in understanding how Congress works is to get to know the new Members of Congress, many of which were not in office when the 2017 Tax Cuts and Jobs Act was passed.

Russ Sullivan and Mark Warren of the law and government relations firm, Brownstein, detailed the new players in town, while Caren Street and Michael Hawthorne, of Squire Patton Boggs, another top law and government relations firm, discussed how best to deliver key family-owned business messages across to their House Members.

New Family-owned Business Research

Attendees were also privy to preliminary research results from our annual national study of family businesses.

The survey once again showed family-owned businesses, like those in the global cold chain industry, survive better than most businesses. Results showed that 81% have been in business for 20 years or more, and 31% have been in business for between 50 and 100 years.

In addition, 90% of family-owned businesses pay their employees above average or average wages and benefits, with 47% paying above average.

When it comes to the critical tax policies affecting America’s family-owned businesses, the most concern centers on high income taxes.

The survey found 47% mentioned personal income taxes as their number one most important issue or concern. This is a 15% jump from our survey last year, which had 41% of respondents saying personal income tax rates were a top concern.

The second most important issue was the Estate, or Death, Tax, which 19% of respondents said was their number one worry, the same as last year.

The concern over Capital Gains remained steady at 12% and was ranked third as a top concern. Last year, the survey found 13% mentioning this as a most important issue.

High Trust Factor

In another survey, 1,000 consumers were polled for Family Enterprise USA by our communications expert, Dr. Frank Luntz.

Highlights from this report revealed family-owned businesses are 78% more trusted by consumers than regular corporations.

The survey also found the American Dream lives on with family-owned businesses.

The Luntz survey found that 91% of respondents believe family-owned businesses are what’s great about America, that is, “the idea that you can start something from nothing and pass it on to the next generation.”

The most important finding in this survey might be that American’s agree that it is “unfair that family-owned businesses pay a higher tax rate than regular corporations.”

When asked this question, 84% agreed with the premise that “family-owned businesses should not have to pay more in taxes than corporations.”

To those who attended this first of three meetings on Capitol Hill, the one clear message was: you must engage with your legislative leaders on a personal, one-to-one basis if you want to be heard.

There is nothing stronger than looking your representative in the eye, in their office, on their turf, and telling them what is important to you, the taxpayer, and a family-owned business leader in their district.

They will listen.

Pat Soldano, President of Family Enterprise USA, and the Policy Taxation Group, both are non-partisan organizations advocating for family enterprises of all sizes. Both groups are organizers of the Congressional Family Business Caucus and of the Family Enterprise USA Annual Family Business Survey.

Accompanying the Global Top 25 are regional listings of the largest GCCA North American, Latin America and European warehouse members. The lists are determined by the total reported capacity of temperature-controlled space in GCCA membership.

GCCA warehouse members currently own or operate 8.16 billion cubic feet (231 million cubic meters), with total capacity represented by GCCA growing by over 10% in 2025. This capacity was added to the Global Top 25 since the publication of the 2024 lists, due to mergers and acquisition activity as well as the completion of numerous in-progress projects. This does not suggest the general industry grew at this pace.

The Global Top 25 currently operate 7.3 billion cubic feet (207 million cubic meters). The North American Top 25 operate 5 billion cubic feet (141.5 million cubic meters). The European Top 10 operate 1.43 billion cubic feet (40.6 million cubic meters). The Latin American Top 10 operate578 million cubic feet (16.4 million cubic meters).

Regions worldwide reported increased capacity, with several new companies joining GCCA membership over the past year. In addition to new entrants to the list, GCCA observed significant movement across regions, with the highest growth by both percentage and total capacity taking place in North America.

The following changes have occurred since 2024:

• Global Top 25 capacity increased by 640 million cubic feet
• North America Top 25 capacity increased by 629 million cubic feet
• European Top 10 capacity increased by 263 million cubic feet
• Latin America Top 10 capacity increased by 137 million cubic feet

“Even with the higher costs of capital, the growth in the industry across all regions in 2024 outpaced the prior two years. While the overall pace of acquisitive growth seemed to slow, the increase in capacity at the largest cold chain operations in the world continued. Investments in expansion projects and greenfield developments in all regions shows legacy operations as well as new market entrants are still optimistic about future demand in the sector.” said Adam Thocher, GCCA Senior Vice President, Global Programs & Insights.

GCCA membership includes over 1,500 temperature-controlled facilities and members in over 92 countries. Warehouse members offer a range of logistics solutions, including storage, transportation, processing, blast freezing, exports, and more.

A complete and complimentary listing of all warehouse members can be found in the Global Cold Chain Directory.

For more information and to access this year’s lists, visit www.gcca.org/resource/top-25-lists/

Spanish Version (PDF)
Portuguese Version (PDF)

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For media inquiries please contact Lindsay Shelton Gross, SVP, Global Communications, Marketing, and Strategic Initiatives, GCCA at lsheltongross@gcca.org

ABOUT GCCA

The Global Cold Chain Alliance (GCCA) represents all major industries engaged in temperature-controlled warehousing, logistics and transportation. GCCA unites all partners to be innovative leaders in the movement of perishable products globally.

This was highlighted by Alonso Fernández Flores, President of the National Association of Federal Inspection Type Establishments (ANETIF), during the signing of an agreement with the Global Cold Chain Alliance (GCCA). The event took place during ANETIF’s second regular Board of Directors session in Guadalajara to strengthen Mexico’s cold chain and ensure quality, safety, and efficiency in handling perishable products at national and international levels.

He added that various areas in the country have been identified as having a high demand for refrigerated warehouses, particularly in the northern and central regions, where the main food distribution centers are located. It is worth noting that, as of October 2024, the World Bank ranked Mexico 47th in its Logistics Performance Index, slightly above the global industry average in cold chain capabilities.

“The rise in extreme temperatures has driven the need to expand and modernize refrigeration infrastructure, focusing on more energy-efficient technologies with lower environmental impact. Additionally, it is crucial to enhance workforce training to ensure the proper handling of perishable products and minimize losses due to supply chain failures. Climate change could severely affect products if strict and efficient control is not maintained, as even minor temperature changes directly impact product shelf life,” stated the ANETIF President.

He added that demand for the cold chain increased significantly after the pandemic, as the market became more demanding and had to adapt to consumer needs for practical and safe food products.

Adam T. Thocher, Senior Vice President of Programs and Global Insights at GCCA, pointed out that this agreement will help strengthen regulations related to certification and quality standards to ensure that perishable products meet food safety requirements. It will also promote policies that facilitate investment in refrigeration infrastructure, encourage the use of renewable energy in cold chain operations, and streamline regulatory procedures for the construction and operation of temperature-controlled warehouses.

“Without a doubt, this agreement will allow ANETIF and GCCA to collaborate on advocacy initiatives to improve the regulatory framework for the sector. Current regulations for cold storage facilities within TIF establishments need to be updated, particularly by adding a specific section on cold storage facilities to the NOM-008-ZOO-1994 standard: ‘Construction Specifications for Establishments and Animal Slaughter Facilities,'” noted Thocher.

Regarding consumer preferences for fresh or frozen products, he pointed out that, traditionally, consumers have preferred fresh products in most cases. However, in recent years, there has been a growing demand for frozen products due to their convenience, availability, and advancements in preservation technologies, which ensure freshness and quality. Additionally, consumer habits have evolved as a result of the pandemic.

“In Mexico and across the Americas, GCCA is seeing increasing demand for temperature-controlled storage capacity, which has led companies to implement investment and expansion strategies to better serve their customers and meet the needs of the population.”

COMMITMENTS OF THE AGREEMENT

The ANETIF-GCCA alliance aims to optimize perishable product preservation processes in Mexico, promote compliance with international regulations, and encourage innovative solutions that enhance the competitiveness of the industry. This will be achieved through certification programs, training, and infrastructure modernization, reaffirming a commitment to excellence in the cold chain.

Through this agreement, ANETIF members will gain access to:

• Best industry practices
• Market intelligence
• Legal assistance
• Training programs and international certifications

These benefits will be available through the Global Cold Chain Alliance (GCCA). Additionally, the agreement aims to expand Mexico’s network of temperature-controlled warehouses, improving food safety and the quality of meat products across the country.

Both organizations agree to contribute to the development, dissemination, and growth of the temperature-controlled food industry in Mexico, leveraging their expertise, specialized programs, and professional networks to benefit the industry and their members.

ANETIF

As the leading organization in Mexico’s meat sector, ANETIF works closely with industry stakeholders and regulatory authorities to ensure that meat products meet the highest quality and safety standards. Through this alliance with GCCA, ANETIF will drive strategic initiatives to enhance infrastructure, training, and technology adoption within the country’s cold chain.

GCCA

The Global Cold Chain Alliance (GCCA) is a global organization that brings together key players in temperature-controlled storage, logistics, and transportation. GCCA promotes best practices through research, industry benchmarking, networking, and education. The organization is composed of four sectors:

• GCCA Warehouse
• GCCA Transportation
• Controlled Environment Building Association (CEBA)
• Global Cold Chain Foundation (GCCF)

Its mission is to strengthen the efficiency and sustainability of the cold chain sector worldwide.

The Global Cold Chain Alliance (GCCA) represents all major industries dedicated to temperature-controlled storage, logistics, and transportation. GCCA unites stakeholders to drive innovation in perishable product movement worldwide. Through its four sectors—Cold Storage, Transportation, Construction, and the Global Cold Chain Foundation (GCCF)—GCCA fosters best practices through research, industry benchmarking, networking, and education. The Global Cold Chain Foundation (GCCF) supports cold chain development globally. For more information, visit www.gcca.org.

ANETIF is the leading, representative, and proactive national association that brings together the country’s TIF establishments. It is considered a consultative and reference body for society and governments in matters of food safety and health, achieving recognition of the TIF seal in national and international markets.

“The GCCA strongly supports the FRIDGE Act and thanks Representatives Feenstra (R-IA), Mann (R-KS), Costa (D-CA) and Carbajal (D-CA); and Senators Banks (R-IN) and Fetterman (D-PA) for their leadership in introducing this important legislation. Given the current uncertainties with tariffs and trade agreements, developing new markets for U.S. products will be extremely important. One of the biggest barriers to increasing trade in emerging markets is the lack of cold chain capacity. The FRIDGE Act would strengthen the ability of these markets to safely and efficiently receive high-quality U.S. perishable commodities, creating new trade opportunities, improving food security and nutrition, and reducing food loss and waste,” said Sara Stickler, GCCA President and CEO.

According to the U.S. International Trade Administration, cold chain systems are crucial to the growth of global trade in perishable products and to the worldwide availability of food. Each year, billions of tons of perishable food products and millions of dollars’ worth of U.S. exports are lost due to poor cold chain systems in developing markets.  Increased investments in cold chain capacity will also help to decrease the over 1 billion metric tons of global food waste created every year.  Many of these losses result from a lack of proper facilities, improper food safety handling procedures, and insufficient training for those personnel working in the cold chain.

GCCA was a strong proponent of the original 2023 bipartisan introduction of the FRIDGE Act in the House and the Senate, which was subsequently included in both the House and Senate versions of the Farm Bill in 2024. GCCA appreciates the continued bipartisan commitment to strengthening the cold chain and recognizing its critical role in supply chain resilience and food security.

Read Rep. Feenstra’s press release here, and Sen. Banks’ press release here.

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For media inquiries please contact Lindsay Shelton-Gross, SVP, Global Communications, Marketing, and Strategic Initiatives, GCCA at lsheltongross@gcca.org

ABOUT GCCA

The Global Cold Chain Alliance (GCCA) represents all major industries engaged in temperature-controlled warehousing, logistics and transportation. GCCA unites all partners to be innovative leaders in the movement of perishable products globally.

GCCA is encouraged by this delay, as it provides much-needed time for pilots to be conducted, refine implementation strategies, and ensure members can prepare for compliance. The rule’s complexity has raised concerns about the burden it places on businesses. This additional time allows for further collaboration between industry stakeholders and regulators to address outstanding challenges.

GCCA has consistently advocated for a practical and effective approach to traceability that balances food safety objectives with the realities of supply chain operations. This extension provides much-needed flexibility for stakeholders to prepare, while continuing to engage with FDA on how to streamline compliance. GCCA remains committed to working with its members and regulatory partners to develop feasible pathways for implementation that minimize disruption while maintaining food safety and supply chain integrity.

2025 data confirm the agriculture industry continues to serve as the heart of the U.S. economy, generating more than $9.5 trillion in economic value: 18.7% of the overall national economy.

Millions of food scientists, production workers, logistics experts, truck drivers, and engineers work in almost 200,000 food manufacturing, processing, and storage facilities to keep our food supply chains strong to ensure fresh, safe food is readily available at home and abroad. GCCA members play a critical role in the U.S. agricultural industry and food supply chain, ensuring the safe and efficient storage and distribution of perishable products.

Access data filterable by state and congressional district, information on methodology, and the full report at www.feedingtheeconomy.com 

Since the update sent on March 4th, the United States Trump administration has further altered its position on the blanket tariffs imposed on Canada and Mexico. The administration has also signalled its intention to introduce other targeted tariff measures in the coming days.

20% Chinese tariff increases have taken effect, as have China’s retaliatory measures against several U.S. agricultural exports. The announcement of Chinese measures to impose tariffs on Canadian agriculture exports, a retaliation against measures taken by Canada last year, is instructive about the potential long-term implications of this new phase of global trade relations.

Chinese Actions

• From March 10^th, China has imposed 15% tariffs on U.S. imports of chicken, wheat, corn and cotton; and 10% tariffs on soybean, pork, beef, fruits and milk products – these are a response to the tariffs recently imposed by the Trump administration
• From March 20^th, China will impose a 100% tariff on Canadian rapeseed oil, oil cakes, and pea imports and a 25% tariff on aquatic products and pork. These tariffs are a response to the Canadian action in October of last year, imposing tariffs on Chinese electric vehicles, steel, and aluminium. The total value of the S. trade affected is estimated at $2.6 billion.

U.S. Actions

• On March 4^th the U.S. imposed an additional 10% tariff on all goods imported from China, taking the total increase in tariff since February ** to 20%. It did, however, delay the imposition of the de minimus exemption for imports of less than $800 – to give time for U.S. agencies to put in place an effective means to control and collect the tariffs
• On March 7^th, the President exempted all goods covered by the USMCA free trade agreement from the blanket tariffs imposed on imports from Canada and Mexico, which covers most agricultural and food products. It also reduced the tariff on imports of the agricultural fertilizer potash to 10% and included the de minimus exemption for low value imports.
• The amended order applies to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on March 7^th , 2025. This means that goods that were imported between 12:01 a.m eastern time on March 4^th and 12:01 March 7^th will be subject to the tariff

Canadian Actions

• Canada has not taken any action to suspend or remove the first phase of tariffs imposed on U.S. imports – these initial tariffs covering orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain paper products remain in place.
• The second phase of tariffs covering a range of core cold chain products, including beef, pork, and dairy, are still subject to a consultation that will not end until April 2^nd, 2025. There is no specific commitment to implement those additional tariff measures on that date, but the assumption at the time is that they would be ready to be put in place if the U.S. cancels its new “pause.”
• No statement has been made on action in light of the U.S. action on USMCA covered goods.
• Canada will also be considering a response to any steel and aluminum tariffs that the U.S. puts in place as early as March 12^th which may go beyond only steel and aluminum.
• Prime Minister-Designate Mark Carney, who will take office within days, has stated that the retaliatory tariffs that Canada already has in place will stay “until the Americans show us some respect.”

Mexican Actions

• The Mexican Government have still not set out any specific counter measures to the U.S. action and the President remains publicly committed to negotiations.

GCCA IS HERE TO HELP

• ENQUIRIES – For any questions or specific issues related to these developments contact the GCCA Legal and Regulatory Affairs team – email Lowell Randel lrandel@gcca.org, or Kerri Marbut kmarbut@gcca.org

• UPDATES will be shared in the GCCA communications, Washington Weekly (Monday 9am EST) the Cold Facts Weekly (Wednesday 9am EST). Sign up by emailing Shane Brennan sbrennan@gcca.org

• STATISTICS on trade flows and developments are available in the Cold Chain Markets Insight

• EVENTS -taking place through 2025 will include briefings and expert discussions on the implications and future of global trade policy and its implications for the cold chain – see calendar here.

• 25% tariff on all imported goods from Canada and Mexico (except for energy from Canada, which is subject to a reduced 10% tariff)

• An additional 10% tariff imposed on all goods imported from China – this follows the 10% imposed on the 2nd of February and so is a cumulative 20% increase.

Further Measures  

Also, in recent days, the administration has suggested further action that will include

• Agrifood tariffs –  In a social media post on 3rd March, the President stated that further tariffs would be imposed on all imported agricultural goods from April 2nd. It is not clear whether this will apply to all goods or selected goods and if these would be in addition to the blanket tariffs imposed so far.

• Reciprocal Tariffs Plan – On 13th February, the administration published the ‘Fair and Reciprocal Plan’ in which the President mandates the creation of a comprehensive plan for ‘restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements. within 180 days or by mid-August’ In the associated briefings, the administration made clear that this plan would look not just at direct tariffs but indirect discrimination like value added, and sales taxes imposed on U.S. goods.

• Port Entry Charge – The U.S. Trade Representative’s office has published a draft proposal to implement a new charge of up to $1.5 million per landing every time a company using a Chinese-built vessel enters a U.S. port. This is a move seen to counter the dramatic shift in global shipbuilding away from the U.S. to China but will have a direct impact on shipping costs of imported goods.

Response  

The three affected nations have all responded and are expected to take further steps as developments continue

• Canada – Canadian Prime Minister Justin Trudeau has confirmed the introduction of retaliatory tariffs also 25% against $155 billion of U.S. goods.​​ ​​As announced at the time of the initial threat duties have been applied on $30 billion worth of U.S. goods immediately, with tariffs on a further $125 billion worth of products are due to be introduced in 21 days, “to allow Canadian companies and supply chains to seek to find alternatives”

• China – China has reacted to the second wave by announcing a wave of import levies covering $21 billion worth of American agricultural and food products. China is one of U.S. agriculture’s biggest customers for produce such as chicken, beef, pork and soybeans and now all those products will face a 10-15% tax which will come into effect on 10 March.

• Mexico – Mexican President Claudia Sheinbaum is expected to announce retaliatory actions in coming days.

A fuller briefing is available to members on request to sbrennan@gcca.org