Baby Formula Imports Face Tariffs Again in 2023
Baby formula imports into the U.S. will be subject to tariffs again in 2023 as the exemptions implemented during a nationwide shortage are scheduled to expire. The shortage began during supply chain issues brought on by COVID, and those issues began to get worse in February 2022. During that month, Abbott, the biggest U.S. supplier of baby formula, recalled several products and closed down a Michigan manufacturing plant after bacterial infections were reported.
Responding to the crisis, American health regulators relaxed import policies, and President Biden invoked the Cold War-era Defense Production Act to rebuild lagging supplies. Congress made the tariff waivers temporary as part of a deal to pass the measure quickly. Then in August, Walmart and Target, said supplies of baby formula were improving.
Industry experts say while things are improving, formula shortages will likely persist through the spring.
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