US Restaurants Turn to Domestic Ingredients Amid Trump Tariffs

US restaurants are rethinking their reliance on imported foods due to Trump's trade policies. Sysco, the largest restaurant supplier, offers a "Home Grown" program featuring domestic suppliers within 300 miles of the Chicagoland area. However, many restaurants are hesitant to switch suppliers due to the uncertainty of Trump's tariffs and the lack of domestic alternatives for some products.

US restaurants are grappling with the impact of President Trump's trade policies, which have led to higher food prices and a shift in sourcing strategies. Sysco Corp., the largest restaurant supplier in the US, has responded with its "Home Grown" program, featuring domestic suppliers within 300 miles of the Chicagoland area. However, the uncertainty surrounding Trump's tariffs and the lack of domestic alternatives for some products have made restaurants hesitant to fully embrace this change.

Sysco's "Home Grown" program, which started around 2019, aims to support local farmers and reduce transportation costs. The initiative has intensified during the pandemic and has been accelerated by the recent resurgence of trade disputes. The program's success is evident in Sysco's reduced reliance on imported goods, with US operations now importing less than 10% of its products [1].

However, many restaurants are cautious about switching suppliers due to the uncertainty surrounding Trump's tariffs. While the 90-day pause on tariffs is set to expire in July, the potential for higher tariffs on Mexican tomatoes and other imported goods has prompted some restaurants to explore alternatives. For instance, Fabien Santos, owner of Merkado in San Francisco, considered adding more tomatoes and white onions to his guacamole to reduce the need for Mexican avocados [1].

The uncertainty has also affected Sysco's customers. Joseph DeFrancesco, a farmer near New Haven, Connecticut, is planning to increase his tomato production, anticipating that imported tomatoes from Mexico will become more expensive due to the upcoming tariffs [1]. Meanwhile, other restaurants are exploring local options, such as Bluehouse Salmon, which has seen increased interest from grocery stores since Trump enacted tariffs [1].

The trade war has also led to a broader shift in the restaurant industry. According to Technomic, more than 40% of eateries surveyed have already shifted some sourcing to the US or countries with cheaper prices [1]. However, the lack of domestic alternatives for some products, such as tropical fruits, coffee, and cocoa beans, remains a challenge.

Sysco's efforts to support domestic suppliers have not gone unnoticed. The company's push to source more domestic goods has been a key factor in its ability to rebound from the pandemic. However, the recent slowdown in growth and the uncertainty surrounding Trump's tariffs have led to a decline in Sysco's shares, down roughly 6.5% this year compared to about a 1% decline for the S&P 500 Index [1].

In conclusion, US restaurants are navigating a complex landscape of trade uncertainty and the need to adapt their sourcing strategies. Sysco's "Home Grown" program offers a potential solution, but the lack of domestic alternatives for some products and the uncertainty surrounding Trump's tariffs remain significant challenges. As the trade war continues to evolve, restaurants will need to remain flexible and adaptable in their sourcing strategies.

References:
[1] https://www.bloomberg.com/news/features/2025-05-27/higher-food-prices-from-tariffs-has-restaurants-asking-sysco-for-help
[2] https://www.cryptopolitan.com/trump-threatens-50-tariff-on-eu-june-1st/