Out-of-Quota Tariffs for Sugar Imports Start Soon
Starting on October 1st, 2025, the duty-free specialty sugar quota (SSQ) is set to end. This means sugar imports will be subject to various tariffs, depending on the country of origin. We’ll take a closer look at what this means for both consumers and businesses that import this commodity.
What Is the Quote On Sugar Imports?
Due to an agreement under the World Trade Organization (WTO), the US imports 1,825 tons of specialty sugar each year. The sugar imported under the WTO minimum is duty-free. However, US demand for organic sugar exceeds that amount.
As a result, the US Department of Agriculture (USDA) sets an annual SSQ on top of the amount set by the WTO. This raises the amount of specialty sugar that can be imported duty-free. For 2024, the quota was set at 231,485 tons.
Unfortunately, USDA made the decision not to apply an SSQ for the 2026 fiscal year (FY). This means any sugar imported into the US beyond the minimum WTO requirement will be subject to duties.
How This Makes Importing Sugar More Expensive
Since an SSQ won’t be applied, more imports of sugar will be subject to tariffs. The exact amount will vary based on the origin of the sugar.
That said, the US gets 40% of its sugar from Brazil. Currently, Brazil receives a 50% tariff, which means businesses that use this country as a supplier will definitely feel the financial strain.
Importers in the US are likely to look for other suppliers in response to the changes.
R+L Global Logistics Stays On Top of Importing News
Here at R+L Global Logistics, we track all the changes that occur in the logistics industry. By staying informed, we’re able to provide the best service for our customers. Reach out to us today if you need more information.