Last updated : September 2026
President Donald Trump’s new trade rules are causing worry for a surprising group: the global kosher food industry. The Orthodox Union (OU), the world’s biggest kosher certification group, sent a formal letter to Commerce Secretary Howard Lutnick.
They warned that proposed taxes (tariffs) on imported vegetable oils will severely hurt the supply of everyday kosher foods.
This dispute shows how taxes meant to protect American businesses can accidentally hurt supply chains that rely on specific imported ingredients. Final tax rates are expected by the end of the year.
he kosher food industry faces higher production costs, and manufacturers warn these costs will likely be passed on to shoppers.
Why Kosher Food Needs These Oils
To understand this problem, we have to look at how processed food is made. Vegetable-based fatty acids, made mostly from palm and coconut oils, are basic ingredients used by food makers everywhere. These fatty acids are turned into food additives called emulsifiers.
Emulsifiers are very important because they keep oil and water mixed together. This makes food last longer on the shelf and improves the texture of everyday items like butter substitutes (margarine), mayonnaise, baked goods, and other processed foods.
Regular food makers can sometimes use animal fats instead of vegetable oils if prices go up. However, kosher food makers usually cannot do this. Under kosher diet rules, animal-based fatty acids are generally not allowed. Because kosher food makers cannot easily find kosher-approved American substitutes, they are very exposed to these specific import taxes.
The Orthodox Union says these new taxes will simply make kosher food more expensive without creating more American supplies.
Rabbi Moshe Elefant, the head of OU Kosher, said these taxes target basic needs, not luxury items. “To me, the big deal here, is that we’re speaking about a fundamental, basic food ingredient,” Rabbi Elefant stated. “It’s not like saying, ‘don’t eat something fancy if you can’t afford it.’ This is something that’s found in everything.”
New Import Taxes Proposed
This supply chain worry started with an investigation by the US Commerce Department earlier this year. A Chicago company named Vantage Specialty Chemicals, which makes vegetable-based fatty acids, asked for the investigation in January 2026. The company said that cheap, government-funded imports from Southeast Asia were hurting American businesses.
“Dumping of foreign government-subsidised fatty acids has significantly damaged competitiveness and is undermining American manufacturing,” Mike Waldron, a leader at Vantage Specialty Chemicals, said earlier this year.
The Commerce Department agreed that some taxes were needed. They proposed new duties on imports from two main countries.
| Country of Origin | Proposed Import Tax | Item Taxed |
| Indonesia | ~16.5% | Vegetable-based fatty acids |
| Malaysia | At least 4% | Vegetable-based fatty acids |
Table 1: Proposed US Commerce Department taxes on Southeast Asian fatty acid imports.
Neither the government nor Vantage Specialty Chemicals has replied publicly to the Orthodox Union’s concerns.
Growing Markets and Higher Prices
The kosher food market is currently growing very fast. The global market is expected to reach over $33 billion to $34 billion by 2033 or 2034. In the US alone, the market reached $5.6 billion in 2025 and is projected to hit $7.2 billion by 2034.
But these rising costs are a big political problem for the Trump administration right now, especially with elections coming up. People are already worried about inflation. A recent poll showed that 71 percent of voters are unhappy with how the administration is handling the cost of living.
By taxing basic ingredients that go into almost everything at the grocery store, the government might make shoppers even more stressed. For kosher buyers, they will likely have to pay the extra 16.5% penalty that food makers are being charged for Indonesian imports.
Trade War with Canada
The US import taxes are not the only problem. The kosher food market is also being hurt by a trade war between the US and Canada.
After trade talks failed, the US put a 50% tax on $20 billion of Canadian goods. In return, Canada announced its own taxes on American goods, which will start on September 8, 2026.
Canada’s response is very bad news for kosher food in North America. Canada is putting a 25% tax on imported American cheese and prepared foods. Because of strict religious rules and established shipping routes, a huge amount of the kosher food eaten in Canada is made in and shipped from the United States.
Starting September 8, grocery bills will jump for Canadian Jewish families, schools, and community kitchens. To help, the Canadian government is offering money to businesses affected by the trade war, so they do not go out of business.
Looking for Solutions
With pressure from both US and Canadian taxes, kosher food makers are trying to fix their supply chains.
Experts say companies need to buy from many different places to stay safe from trade wars. Some manufacturers are trying to move their supply lines closer to home, looking to buy from countries like Mexico or Canada that might avoid some US taxes.
But changing suppliers for kosher food is very hard. Every new factory and ingredient must be checked carefully to make sure it follows religious dietary laws. Groups like OU Kosher are using their large databases to help companies find new, approved suppliers quickly.
Until these new supply lines are ready, kosher shoppers across North America will likely have to pay more for their groceries.
Frequently Asked Questions
Why are US tariffs affecting kosher food prices?
The US is planning to put new taxes on imported vegetable-based fatty acids from Indonesia and Malaysia. Kosher food makers use these oils in many everyday foods, and they cannot easily switch to animal fats because of religious diet rules.
What foods use these imported fatty acids?
These vegetable oils are turned into emulsifiers, which help mix water and oil. They are used in common items like mayonnaise, margarine, baked goods, and other processed foods to improve texture and make them last longer.
Why did the US government propose these new taxes?
A Chicago-based company called Vantage Specialty Chemicals complained that cheap, government-funded imports from Southeast Asia were hurting American manufacturing. The US Commerce Department investigated and proposed taxes of about 16.5% on Indonesian imports and at least 4% on Malaysian imports.
How is Canada involved in the kosher food supply chain problems?
Canada and the US are in a separate trade war. Canada is putting a 25% retaliatory tax on American cheese and prepared foods starting September 8, 2026. This will greatly increase food costs for Canadian kosher shoppers, as they rely heavily on imports from the US.
What is the Orthodox Union doing about this issue?
The Orthodox Union, the world’s largest kosher certification agency, sent a letter to Commerce Secretary Howard Lutnick warning that the new taxes will hurt the kosher food supply and raise costs for families without actually helping domestic production.
