Starting July 9, new U.S. tariffs will impose up to 15% duties on imported spices like pepper, vanilla, and cinnamon. Alongside rising freight and packaging costs, consumers can expect retail spice prices to climb later in 2025.
On July 9, 2025, the U.S. will impose up to 15 percent tariffs on a broad range of imported spices—including black pepper, vanilla, cinnamon, and nutmeg—from countries without free-trade agreements. Because virtually all these flavorings originate overseas, the higher import duties threaten to push ingredient costs skyward, with companies likely passing those increases on to consumers.
Even before the new tariffs take effect, spice supply chains have been under intense pressure. Unpredictable weather patterns in major growing regions have reduced harvests, while elevated freight rates and container shortages have inflated shipping costs. Simultaneously, tariffs on steel and aluminum have driven up the price of tins and glass jars, further squeezing spice makers’ margins.
McCormick, the world’s largest spice company, warns that the duties could add roughly $90 million in annual costs, prompting selective price hikes as early as Q4 2025. Smaller spice brands—lacking McCormick’s scale and hedging capacity—may resort to shrinking package sizes or discontinuing niche varieties to maintain shelf prices. Retailers, in turn, may raise sticker prices on popular blends and single-origin spices to protect profitability.
To blunt the impact of tariffs, many suppliers are shifting origins—sourcing vanilla from Indonesia instead of Madagascar, and pepper from Brazil rather than Vietnam. Food manufacturers are experimenting with recipes that lean more heavily on domestically grown herbs like oregano and thyme. Yet, as the American Spice Trade Association notes, U.S. cultivation remains too limited to replace the bulk of imported spices, leaving long-term relief contingent on trade-policy changes.
Rising spice prices underscore the need for budget-friendly cooking strategies. Buying whole spices in bulk and grinding them at home can lower per-use costs and lock in freshness. Focusing on pantry staples—such as garlic powder, bay leaves, and dried oregano—that face smaller or no tariffs helps stretch the grocery budget. And growing fresh herbs in a windowsill garden provides vibrant, duty-free flavor right at your fingertips.