There is much confusion over what tariffs apply or don't apply at any given time. Tariffs themselves are subject to arbitrary and immediate change that can affect even shipments that are en-route. Exemption lists which make exceptions for certain hydrocolloids to be at zero tariff, can change at the drop of a hat.

This uncertainty and uncertainty is likely to result in a growing number of supply proposals that are made on an FOB (Free on Board) basis, whereby the seller is free of responsibility once goods are on the shipping vessel at point of departure. Even for CIF (cost, insurance and freight) sales, however, the buyer remains responsible for import duties and tariffs whatever they may be at the time of arrival at the destination port.

Hydrocolloid inventory in a US warehouse which has cleared all duties and tariffs has a distinct value over quotes from international sources. End-users, themselves are now prepared to maintain significant inventory to avoid or minimize the threat of production shutdowns. We have said it before: Just in time - Just forget it!! US Import Tariff Exemption List There has not been any change to the exemption list since the Hydrocolleague Tidbits of last week. The last modification was on September 5, 2025. Hydrocolloids which are exempt from any tariff include agar, acacia, locust bean gum, guar gum, cellulosics (presumable all food cellulosics, CMC, MC/HPMC and MCC), tara gum and "biopolymers now changed to polysaccharides ", (xanthan gellan etc.). Hydrocolloids which are NOT on the exempt list include alginates, carrageenan, cassia tora, gelatin and pectin. Some starches are exempt (tubers) whereas others are not.

If you wish to search for yourself, a link to the 89 page exemption list is HERE. Most hydrocolloids are listed on pages 43 and 77. Let us know if we have missed any.

GRAS Uncertainty

Another level of uncertainty in the US is caused by the plan to upend the status of ingredients and additives which are approved under a 'Generally Recognized as Safe' (GRAS) category. If and when this designation is dropped, it may well put in question a few hydrocolloids. Obtaining a full, food additive petion (FAP) approval can take years and costs tens of millions of dollars, as attested by the process which gellan gum had to go through in the 1980's. A more detailed and nuanced coverage of this complex issue is found at this link for Venable LLC HERE. Which specific hydrocolloids are at risk? See, Q3-2025 of The Quarterly Review of Food Hydrocolloids. Prices in Q3 remain surprisingly steady As we finalize the Q3 issue of The Quarterly Review of Food Hydrocolloids we are pleasantly surprised at how steady most prices are remaining. In part this is because much of the supply is under annual contracts. Expect Q4 negotiations for 2026 to implement increases for annual contracts. Be prepared for reluctance to sign annual contracts unless escalation clauses are included. Detailed prices and explanations in the Q3 report to be issued the first week of October.

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