Restaurants across the US state of Iowa, including the recently established Prime and Providence in West Des Moines, are bracing for the impact of new global tariffs introduced by the Trump administration, as reported by KCCI.
The tariffs, particularly on Japanese beef – a key ingredient for many establishments – are expected to increase costs and affect menu pricing.
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Prime and Providence owner and chef Dominic Iannarelli stated that they “could, in turn, almost price it out of the market.”
Iannarelli foresees a potential eight to ten-week delay before these costs are reflected in their menu prices.
He believes that the restaurant may have to reprice items as and when the increased costs impact the supply chain.
Iowa Restaurant Association president and CEO Jessica Dunker voiced industry concern, stating: “We are anxious.”
She underscores the difficulty for restaurant owners who already operate on slim margins, now having to navigate the added challenge of tariff-induced cost escalations.
Dunker said: “It’s really scary. This is one of the scariest times we’ve had since Covid in a lot of ways.”
The US National Restaurant Association has acknowledged the challenges posed by the new tariffs, effective from 5 April 2025 after President Donald Trump announced a universal baseline tariff of 10%.
The tariffs, which vary by country, will see China facing a 34% tariff, Japan 24%, the European Union 20% and Vietnam a significant 46%.
The changes are set to disrupt within the restaurant sector, compelling operators to adapt swiftly to maintain their businesses.
National Restaurant Association president and CEO Michelle Korsmo stated: “The biggest concerns for restaurant operators — from community restaurants to national brands — are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers.
“Restaurant operators know consumers are very sensitive to costs and have kept menu price increases to 30%, while their food costs have gone up 40% in the last five years.”
