How the Import Tariffs Will Impact Cinnamon Prices in the USA (DRUERA’s Insights)

The comforting aroma of cinnamon in American kitchens is now at risk. Due to tariffs, it faces an uncertain future. In April 2025, sweeping new import tariffs took effect. Cinnamon from key supply nations like Sri Lanka (44%), Vietnam (46%), and China (34%) will show huge spikes. 

As the world's largest spice importer ($10.53 billion in 2023), the U.S. now faces big disruptions to its cinnamon supply chain. The problem? This spice has become a firm part of culinary traditions, driving America's food culture.

At DRUERA, with 20 years of experience sourcing premium Ceylon cinnamon directly from Sri Lankan farmers, we've weathered trade storms before. But these tariffs represent an unprecedented challenge. 

"This isn't just about higher prices," explains Mike de Livera, DRUERA's COO. "It's about preserving access to authentic spices like true Cinnamon that simply can't be replicated domestically."

The irony? There is no U.S. cinnamon industry to protect. These tariffs threaten to make your morning cinnamon toast, holiday cookies, and favorite curries more expensive while doing nothing to support American growers. In this analysis, we'll break down what the new tariffs mean for:

• Consumers facing inevitable price hikes
• Small businesses relying on authentic global flavors
• The future of spice quality and availability

With our unique perspective spanning Sri Lankan cinnamon fields to American kitchen tables, DRUERA provides clarity in this turbulent trade environment. The question isn't whether cinnamon prices will rise, but by how much - and whether consumers will still be able to access the real Ceylon cinnamon that makes recipes sing.

The US Appetite for Cinnamon and Spices

So, why all the fuss about cinnamon tariffs? To get it, you need to understand just how much Americans love their spices. Seriously, the US imports more spices than any other country on Earth. We're talking billions spent bringing flavors from around the globe right into our kitchens.

It's not just one thing driving this hunger for flavor. Think about it:

1. Amazing Food Fusion: Thanks to vibrant Hispanic and Asian communities and a general love for global eats, our plates are way more exciting than they used to be. Authentic spices are key.
2. Smarter Eating: Lots of folks are using spices to cut back on salt and fat without sacrificing taste. Good call, right?
3. Adventure Time: We're trying everything! Ethiopian, Thai, Mexican... you name it, and chances are it needs specific spices.

Now, where does cinnamon fit in? It's a superstar. While black pepper technically brings in the most import dollars (1.2billion!), cinnamon isn′t far behind at a massive 400 million imported in 2023. It easily beats out heavy hitters like ginger, garlic, and paprika.

"Cinnamon is woven into the fabric of American food," notes Mike de Livera. "It's in grandma's apple pie, your morning latte, holiday dinners... It's comfort. When you mess with the cinnamon supply, you're messing with something fundamental."

This deep love for cinnamon, backed by huge import numbers, is exactly why the new tariffs on specific cinnamon-growing countries are set to hit hard. Let's look at which types are affected and where they come from.

The Tariff Hit List: Which Cinnamon Gets Hit?

So, we've established that America loves its cinnamon. But the government isn't treating all cinnamon the same with these new tariffs. Think of it like this: depending on where your cinnamon grew up, it now faces a hefty extra "tax" just to get into the US. This gets added before it even hits the shelves.

 

Here’s the breakdown for the main places the US gets its cinnamon fix (based on 2023 import shares):

• Vietnam (Supplying 34% of US Cinnamon): Known for that bold Saigon Cinnamon, imports now face a massive 46% tariff. Ouch.
• China (Supplying 26%): Mostly sends the common Cassia Cinnamon, which gets slapped with a 34% tariff. Still steep.
• Sri Lanka (Supplying 20% - That's Us!): The home of authentic Ceylon Cinnamon (the "true" cinnamon DRUERA specializes in) wasn't spared – it faces a significant 44% tariff. Yes, even the premium variety gets hit hard.
• Indonesia (Supplying 18%): Provides Korintje Cinnamon (another Cassia type, often used in baking), which now has a 32% tariff.
• (And a tiny fraction comes from places like the UAE with lower tariffs, but the big four above are where most of your cinnamon originates).

Let's be clear: these percentages aren't small adjustments. A 30%, 40%, or nearly 50% hike tacked onto the import cost is a huge deal. It fundamentally changes the economics of bringing these beloved spices into the country.

"Seeing a 44% tariff specifically on Ceylon from Sri Lanka is tough," adds Mike de Livera. "It directly impacts the authentic, high-quality cinnamon we've worked so hard to bring to people. It's not just a number; it's a direct hit to a specific type of quality and origin."

This isn't just paperwork; it's a direct financial squeeze on every pound of cinnamon coming from these key regions. So, what happens next? How does this ripple through the system and eventually reach your spice rack? Let's get into the expert predictions.

Expert Take: How This Spice Storm Plays Out (DRUERA's Insights)

Predicting the future is tricky, but after nearly two decades dealing with everything from weather woes to global shutdowns, you get a feel for how things shake out in the spice world. At DRUERA, we've seen firsthand how international ripples affect that jar of cinnamon in your pantry.

Here’s our COO, Mike de Livera, breaking down the likely chain reaction from these new tariffs:

1. Prediction 1: The Big Pause Button: "Right away, expect importers in the US to get hesitant," Mike predicts. "Facing an immediate 30-40% cost jump? Many will pause orders, rethink contracts, and wait to see how things settle. This uncertainty alone can disrupt supply chains, leading to potential gaps on shelves or delays."
2. Prediction 2: Brace for Higher Prices (That's You): "Let's be real – someone has to pay for these tariffs," Mike explains. "In the short term, importers and brands like us will try to absorb some of the hit to stay competitive. But margins in the food industry are already tight. Most of that extra cost? It's inevitably going to be passed along to the consumer at the checkout. Expect your favorite cinnamon to cost more, plain and simple."
3. Prediction 3: The Long Game & Sneaky Routes? "If these tariffs stick around long-term," Mike suggests, "you might see attempts at 'Entrepot trade.' That's basically routing cinnamon through a third country with lower tariffs to try and mask its origin and avoid the big tax hike. It's complex, adds costs elsewhere, and can be legally murky, but businesses under pressure might explore it."

Beyond the Price Tag: Why These Tariffs Miss the Mark

Mike also points out a couple of major flaws in applying these broad tariffs to something like cinnamon:

• Let's be clear: despite political rhetoric, tariffs like these aren't typically paid by the exporting country (like Sri Lanka or Vietnam). Economists generally agree, as mentioned in recent analyses like those from the University of Chicago and echoed in articles from publications like Eater, that the cost gets absorbed within the US – split between the company importing the goods and, ultimately, the consumers. That 44% tariff on Ceylon cinnamon? It becomes part of the cost structure here in the States.
• Will Choice Shrink? Facing higher costs and uncertainty, many importers might become more risk-averse. This could mean sticking to core, high-volume products and being less willing to import unique, small-batch, or less common spices. That exciting new variety of chili or rare cardamom you discovered? It might become harder to find or disappear altogether as businesses focus on safer bets to manage the increased costs. Less innovation often follows economic pressure.
• Transparency Becomes Key: When prices are volatile and supply chains are strained, you need to know where your spices come from. Which brands are open about their sourcing? Which ones clearly state the type of cinnamon you're buying (Ceylon vs. Cassia vs. Korintje)? Which ones are upfront about quality testing (like our lead testing)?
• The Big Irony: Who Are We Protecting? "The stated goal of tariffs is often to protect domestic industries," Mike notes. "But here’s the kicker: there is no significant commercial cinnamon farming industry in the United States to protect. We simply don't grow cinnamon here at scale. So, these tariffs are adding costs and potentially limiting access to unique global flavors without actually boosting any American farmers."

Essentially, the policy creates financial pain and logistical headaches for a product Americans love, without achieving a clear domestic benefit for that specific spice.

Our Promise: Sticking to Our Roots in Turbulent Times

Facing challenges like these new tariffs isn't new territory for us, but it definitely tests everyone involved. So, with all this, what does DRUERA do to show its commitment to its farmers and customers, and navigate this new reality?

Here’s what Mike de Livera assures his suppliers and customers

• DRUERA needs to stick to our core values as a company.
• DRUERA has been built on long-term partnerships with farmers for over 20 years who have been loyal and trustworthy.
• Even during the Covid period, we pulled through in very trying conditions.
• We wish to assure our customers that we did not increase our prices during Covid, and we will do our utmost to cushion the impact of these Tariffs.

This isn't about corporate spin; it's about our fundamental belief in fair dealing. We built DRUERA by connecting people directly to high-quality, authentic Ceylon cinnamon from a source we trust implicitly. These tariffs complicate things, absolutely. But they don't change our commitment to the people at both ends of that connection – the farmers in Sri Lanka and you, our customers.