2025, the administration broadened the tariffs’ scope again, extending them to the steel and aluminum content of fi nished goods. Products that are substantially composed of steel or aluminum, known as derivatives, are also covered by the Section 232 tariffs. These include many kinds of equipment found in commercial kitchens. As of August 2026, the tariff rate for refrigerators, freezers, table knives, and dishwashing machines from most countries was 25%, while the rate for cooking stoves, ranges, and ovens was 15%.


Even equipment made in the United States is still affected by these higher tariff rates. According to the Council on Foreign Relations, the country imports 25% of its steel and relies on imports for around half of its aluminum. That equates to higher costs for any manufacturer relying on foreign sources to supply those materials.


USMCA Under Strain Alongside the tariff actions, the


administration has pursued a series of trade agreements with individual countries over the past year. Among the most consequential developments has been the renegotiation of the United States-Mexico-Canada Agreement (USMCA), which underpins the cross-border supply chain that many foodservice equipment and supplies distributors and manufacturers rely on. The fi rst Trump administration negotiated the trade deal as a replacement for the North American Free Trade Agreement and it went into effect in July 2020. The USMCA requires its member countries to conduct a mandatory joint review every six years, and 2026 marked the fi rst such review. Representatives from the three countries met virtually on July 1 to fulfi ll that obligation. While Canada and Mexico confi rmed they wanted to extend the agreement for


20 FEDA News & Views


“Congress must reassert its authority over trade and tariffs to stop any president from being able to unilaterally change the worldwide economy at the click of a button.”


— Ron Wyden


Senate Finance Committee Oregon


another 16 years, the United States announced it would not renew the agreement in its current form. The USMCA remains in place for


now, but the U.S. decision triggered a new process through which reviews will now be held annually to give the three countries an opportunity to resolve outstanding trade issues or to negotiate a replacement agreement. If a deal is not reached by 2036, the USMCA will expire. Tensions between the neighboring countries have already surfaced. On Aug. 22, the U.S. imposed new 50% tariffs on $20 billion worth of Canadian goods, including dairy products, alcoholic beverages, and motor vehicles. The duties apply even to products that previously qualifi ed for preferential treatment under the USMCA. Canadian Prime Minister Mark Carney responded by saying that Canada would retaliate “dollar for dollar.”


Congress Weighs a Check on


Tariff Authority The rapid pace of tariff changes has prompted a legislative response. Sen. Ron Wyden (D-OR), the ranking member of the Senate Finance Committee, introduced the Congressional Trade Powers Reform Act of 2026 (S.B. 5801) on July 22. The bill would limit the president’s ability to impose tariffs by requiring congressional approval and


would establish a bicameral committee on tariffs and trade. This group would be staffed on a nonpartisan basis with economists, lawyers, and other international trade experts, who would review and make recommendations on proposed tariff actions. The legislation would also increase oversight of the Offi ce of the U.S. Trade Representative by installing an inspector general and moving it outside the executive branch. “Congress must reassert its authority over trade and tariffs to stop any president from being able to unilaterally change the worldwide economy at the click of a button,” Wyden said. The bill has been referred to the Senate Finance Committee for consideration. FEDA and many of its advocacy partners are supporting efforts to stabilize the tariff situation. Higher costs threaten not only serious supply chain disruption but may also reduce the capital available for distributors to hire, increase wages, or invest in expansion. The past two years of tariff whiplash


underscore the importance of a predictable trade policy, which matters as much as the tariff rates themselves. A sensible approach to trade that allows distributors and manufacturers to secure the products and resources they need from the most competitive sources remains essential to keeping the supply chain functioning and costs manageable for end customers.


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