ASTA Statement on U.S.-Indonesia Trade Framework
ASTA's Executive Director issues a statement on the Administration's America First trade policy to negotiate and implement trade agreements that strengthen the American economy and promote U.S. competitiveness, such as the recent deal with Indonesia.
The U.S. spice industry values the Administration's America First trade policy to negotiate and implement trade agreements that strengthen the American economy and promote U.S. competitiveness, such as the recent deal with Indonesia. We support fair and balanced trade policies that reflect the realities of global supply chains and ensure U.S. consumer access of essential imported ingredients, such as spices. These spices naturally add flavor and promote consumption of nutritious and whole foods, and are not otherwise available in the U.S.
Many essential spices, including cinnamon, pepper, nutmeg, cloves and vanilla, require tropical conditions and cannot be cultivated domestically on a commercial scale. Tariffs on these products do not incentivize U.S. production or create American jobs. Instead, they place an undue financial burden on U.S. food manufacturers, restaurants, and ultimately, American consumers.
In fact, the importation of these essential spices supports innovations and operations within the $1.2 trillion U.S. food service industry, including about 50,000 direct U.S. spice industry jobs. These jobs in processing, quality assurance, distribution, and product development contribute significantly to the broader food and restaurant sector, which employs millions of Americans.
ASTA is encouraged by language within the U.S.-Indonesia Framework for an Agreement on Reciprocal Trade, under which the U.S. may identify certain commodities not naturally available or domestically produced in the U.S. for a further reduction in the reciprocal tariff rate (often referred to as “Unavailable Natural Resources”). This is a positive sign that the Administration is considering the unique challenges faced by industries that rely on imported agricultural products due to climate and growing conditions. Indonesia is a critical supplier of several spices that are not domestically produced in the U.S., nor are able to be grown here.
We urge the Administration to implement reduced rates for these commodities, outlined in ASTA’s letter to USTR, as negotiations progress. This approach not only supports the U.S. spice industry but also helps preserve affordability for American families and competitiveness for food businesses that use spices to flavor food.
We strongly encourage the Administration to implement this promising framework for spices that cannot be commercially produced in the U.S. across all relevant trade agreements, including potential future deals with any other key trade partners from which our industry sources these critical Unavailable Natural Resources, including Brazil, Egypt, India, Madagascar, Malaysia, Sri Lanka, Thailand, and Vietnam.
ASTA remains committed to working closely with the Trump Administration and key agencies to ensure that U.S. trade policies support – not unintentionally harm – American sectors that rely on goods unavailable in the domestic market. We firmly believe that smart, targeted trade policies can support the U.S. spice industry and other American businesses, while helping to keep grocery costs down for families.
