Bare baby-formula shelves at QFC grocery store, Lynnwood, Washington, USA (Credit: Colleen Michaels / Shutterstock.com)

Foreign providers that came to the rescue when the US faced an infant-formula shortage last year are likely to face import tariffs again now that local supplies are getting back up to speed, it is reported.

The Wall Street Journal (WSJ), citing people familiar with the matter, said temporary exemptions put in place during the shortage will expire soon and foreign manufacturers will once again face tariffs of up to 17.5% on products shipped to the US.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The tariffs were waived to help American families struggling to find formula following supply-chain problems caused by the closure last February of a manufacturing facility in Michigan owned by Abbott Laboratories, the biggest US supplier. It was closed after consumer complaints related to cronobacter sakazakii or salmonella illness from the consumption of products made there.

The WSJ report quoted a White House spokesman as saying the tariff waivers doubled the number of manufacturers selling baby formula in the US with European and Australian companies to the fore.

Millions of cans of emergency supplies were imported from companies including Nestlé and Reckitt Benckiser as the Biden administration invoked emergency measures to facilitate the imports of replacement products from abroad.

Abbott’s plant was re-opened in July but the ripple effects of the closure led experts to call for more diversity in the market.

Last month, a wide-ranging report into the practices, culture and structure of US regulator The Food and Drug Administration (FDA) called for change at the organisation in the wake of the infant-formula shortage.

Some infant-formula manufacturers, including Bubs Australia, have applied to the US regulator for approval to supply products to the country on a permanent basis.

But some US media reports suggest that the country’s dairy industry has lobbied for the re-introduction of import tariffs.