Tariffs, Trade, and Treats: Understanding the Policies Behind Pet Food Pricing

Jun 17, 2025

“Why does everything cost more right now?”
^ You right now, probably.

If you make or manufacture pet food—or supply ingredients for those who do—this is probably something you’ve asked (or shouted into the void) recently. It’s not just inflation or supply chain delays anymore. Tariffs and trade policy are playing a much bigger role than most business owners realize.

You may have noticed that key ingredients, packaging, or even shipping costs have gone up. But unless you're knee-deep in international trade news, it can feel hard to connect the dots.

Below, we’ll break down the most common terms being thrown around—tariffs, levies, GDP, imports, exports—and show exactly how these affect your costs (even if your products are made in the USA).

And don’t worry, there’s no econ degree required. We’re keeping it simple.

Terms you’ll hear more of in 2025

Here’s a rundown of the buzzwords you’re going to keep hearing and what they really mean for your pet food business:

Tariff: A tax on imported goods. You pay more for ingredients or packaging sourced from other countries.

Levy: A general term for a tax or charge, including tariffs.

Import / export: Goods coming into or leaving the U.S. Even if you don’t import directly, your suppliers might.

GDP: A big-picture view of the economy—not a great forecasting tool for your specific costs.

Trade policy: Government decisions that impact what’s taxed, what’s allowed in, and how ingredients are regulated.

Tariff vs. levy: what’s the difference, and why does it matter?

At its core, a tariff is a tax placed on goods that are brought into the country: imports. When a tariff is imposed, the price of that item goes up. That’s because the importer pays the tax and usually passes that cost on to businesses like yours.

A levy is a broader term; it’s any kind of tax or fee, including tariffs. So, while you might hear these words used interchangeably, “tariff” is the specific one to watch when it comes to global trade and rising costs.

This stuff may sound academic, but it has a direct impact on your bottom line. When tariffs are imposed on things like meat by-products, grain, fishmeal, or even processing equipment, it increases your input costs even if your supplier is domestic. Why? Because they’re probably sourcing from global markets, too.

Imports, exports, and why pet food makers should care

Let’s say you’re making jerky-style treats or fresh meals like our clients A Pup Above. You might be sourcing liver, organ meat, or fish from a U.S. supplier, but they’re getting it from South America or Southeast Asia.

Or maybe you're importing plastic packaging, labels, or manufacturing equipment. Even if you’re not importing goods yourself, your suppliers might be—and that cost increase gets passed along.

Tariffs don’t just apply to raw ingredients either. Commonly affected items include:

Aluminum packaging and liners

Nutraceuticals like glucosamine or chondroitin

Plant-based protein powders

Extrusion machinery or replacement parts

So even if your label proudly says “Made in the USA,” trade policy still plays a major role in what you pay and what you charge.

What GDP tells us and what it doesn’t

You’ve probably heard politicians or media outlets talk about GDP (Gross Domestic Product) as a measure of economic health. It represents the total value of everything produced within a country.

But GDP doesn’t always reflect the real experience of small businesses.

For example, the U.S. might have rising GDP numbers, but pet food companies could still be paying more for ingredients, struggling to source raw materials, or facing new trade restrictions. That’s because GDP is a lagging indicator—it tells us what happened, not what’s happening.

When trying to forecast costs or decide whether to adjust your pricing, paying attention to trade policy and tariff shifts will give you much better real-time insight.

Why tariffs are making things tricky for pet food brands

In 2025, the U.S. reinstated or increased tariffs on a wide range of Chinese goods, including some commonly used in pet food production. This includes:

Certain fish meals and seafood byproducts

Machinery parts for food processing equipment

Select nutritional additives and supplements

What’s more, U.S.–Mexico agricultural negotiations have led to shifts in how ingredients like corn or soy are taxed and traded. That means feed prices are fluctuating too, impacting upstream suppliers in the pet food chain.

A recent report from the U.S. International Trade Commission showed that increased tariffs have led to measurable spikes in input costs for agriculture-adjacent industries, including pet food and livestock feed.

These aren’t just small fees - tariffs can range from 5% to 25%, depending on the good and the country of origin.

Here’s the catch: most brands just experience these impacts as higher invoices. But behind the scenes, trade shifts are often to blame.

What can you do (without becoming a trade policy expert)?

You don’t need to refresh Politico every morning or read the Federal Register to stay compliant or competitive.

Here’s what you can do:

Build in buffer pricing: Expect some fluctuation in raw material or ingredient costs, especially if your supplier network includes international sources.

Review sourcing transparency: Ask your ingredient or packaging vendors where their goods originate. If they’re importing, find out which tariffs might affect you.

Plan ahead for regulatory changes: Tariffs and trade shifts often lead to new labeling or licensing requirements, especially if they change the source country listed on your packaging.

Need help reviewing your state licenses or making sure your sourcing lines up with new import guidelines? Book a free consult. We make it easy to stay ahead.

If you’d like to learn more: