Root Causes of and Solutions to High-Tier Imports Discussed During International Sweetener Symposium

Vail, Colorado (August 4, 2026) — The rise in high-tier sugar imports — sugar brought into the United States outside normal import quotas and subject to substantial duties — should be addressed through more responsive U.S. sugar program administration, not higher duties, argued Randy Green of Watson Green LLC during a panel discussion today at the American Sugar Alliance’s 41st International Sweetener Symposium.

“Sugar users and producers share an interest in reducing reliance on costly high-tier imports,” said Green. “But making these last-resort imports even more expensive will not address the supply shortages that have caused them to increase. The more effective solution is to ensure adequate sugar is available through normal channels before manufacturers are forced to pay high-tier duties.”

High-tier sugar imports have exceeded 200,000 short tons four years in a row, and while inflation has reduced the high-tier duty’s value over time, it remains substantial: based on recent world raw sugar prices, the tariff can nearly double the cost of the sugar before transportation. Nevertheless, food manufacturers resort to these costly imports when supplies from domestic producers, Mexico and countries holding U.S. sugar quotas are insufficient to meet demand.

While periodic crop shortfalls have contributed to elevated high-tier imports in certain years, Green explained that the broader increase reflects failures in how the sugar program has been administered. “Recent increases in high-tier sugar imports reflect policy failures to ensure sufficient supplies through normal import channels — not a need for higher tariffs,” he said.

In recent years, the U.S. Department of Agriculture (USDA) has not authorized sufficient additional supplies through tariff-rate quota (TRQ) increases or imports from Mexico. Insufficient adjustments to the specialty sugar TRQ and supply estimates that understated deliveries and overstated ending stocks have also played a role.

To address these underlying supply issues, the Sweetener Users Association (SUA) supports simple solutions to reduce reliance on high-tier imports while maintaining a strong domestic sugar industry:

  • Swiftly implementing the mandatory reallocation of unused sugar import quotas required by Congress in the One Big Beautiful Bill Act.
  • Increasing or reallocating TRQs when available supplies are insufficient to meet projected demand.
  • Ensuring USDA supply estimates accurately reflect deliveries and ending stocks.
  • Adjusting the minimum TRQ over time to reflect growth in U.S. sugar demand.

These steps would address the supply conditions driving high-tier imports. Meanwhile, additional tariffs would only make these costly imports more expensive. Given that recent Section 301 tariffs effectively raise high-tier tariffs — with sugar entering under normal World Trade Organization raw and refined sugar quotas exempt — it is even more important to ensure adequate supplies are available through those normal channels.

Media Contact:
Anna Miller
amiller@fratelli.com