Pet food prices faced steep rise as Trump tariff deadline approaches

Thailand's pet food industry is currently facing significant uncertainty due to impending U.S. tariffs. In April 2024, Donald Trump announced a sweeping tariff plan that included a 36 percent import tax specifically affecting pet food from Thailand, the largest foreign supplier to the U.S. However, he subsequently implemented a 90-day pause, allowing for an import tax cap of 10 percent while trade discussions proceeded. With the deadline looming on July 9, 2024, Thai officials have engaged in negotiations with the U.S. to try to reduce the tariffs further. Despite some progress reported by Thailand's commerce minister, pet food producers in Thailand remain anxious, indicating that any increase above 10 percent could lead them to suspend U.S. shipments. They have expressed doubts about their American customers’ ability to absorb these costs without raising retail prices significantly. The U.S. imported around 392 million kilograms of cat and dog food last year, and any disruption in supply chains could drastically affect prices in the American market. Some companies, however, including Bluefalo Petcare, are preparing to take advantage of the additional tariffs on Chinese imports, allowing them to compete more effectively in the U.S. market. Yet, for Thai exporters, the situation remains precarious, with many feeling powerless as they wait for the outcome of negotiations.