NASHVILLE, TN (RFD News) — U.S. sugar producers are pushing for stronger import protection as high-tier foreign sugar shipments add pressure to already tight farm margins. University of Tennessee Institute of Agriculture professor Karen DeLong says the Tier 2 sugar tariff has not been updated since 2000.
Tier 2 applies to sugar imported above low-duty tariff-rate quota levels under the World Trade Organization and trade agreements. The tariff is 15.36 cents per pound for raw sugar and 16.21 cents for refined sugar.
DeLong says Tier 2 imports have increased by more than 1,400 percent since fiscal year 2018, rising from 64,000 short tons (raw value) to more than 928,000 by fiscal year 2025.
The surge comes as domestic sugar farms and processing capacity continue shrinking. Research cited by DeLong shows that sugarbeet farms fell by 54 percent from 1997 to 2022, while sugarcane farms declined by 31 percent.
The debate now centers on whether higher tariffs would protect domestic sugar production without materially raising food costs. DeLong says sugar accounts for a small share of the prices of most sugar-containing products.
