: Imported baby formula is about to get expensive again, with tariffs back in place

by | Jan 9, 2023 | Stock Market

The Food and Drug Administration’s temporary waiver of infant-formula tariffs to address the national baby-formula shortage expired Friday, meaning imported formula could again face tariffs of up to 17.5%. Product recalls from Abbott Laboratories
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last February exacerbated an infant-formula shortage caused by supply-chain disruptions. The FDA said “further extensions [are] possible for firms that express interest in and take steps toward remaining on the U.S. market.”

During the peak of the shortage in May, infant formula was out of stock at a rate of more than 80% nationally. Desperate parents across the country spent hours on the road trying to secure their formula of choice, and turned to social media for help from other parents. Congress and the Biden administration last year took a series of steps to boost supply, including working with domestic manufacturers; giving temporary exemptions to foreign manufacturers; and launching Operation Fly Formula, a multi-agency effort to expedite the import of formula from overseas. By late September, Operation Fly Formula had transported more than 97.9 million 8-ounce bottle equivalents to the U.S., according to the White House.  Domestic manufacturers said they’ve been operating at full capacity to keep up with the demand from parents.  A special waiver by the U.S. Department …

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