New U.S. Tariffs and the Halal Certification Perspective for Exporters

On April 2, 2025, President Donald Trump announced a baseline 10% tariff on imports from nearly every country, with higher rates, up to 50%, for certain nations. 

This recent imposition of U.S. tariffs is having significant implications for global trade, also subsequently affecting importers and exporters of halal-certified products globally. 

Disclaimer: This article and all information contained herein are accurate as of the publication date: May 2025.

Understanding the New U.S. Tariffs

The new U.S. tariffs have been formalized through an executive order under the International Emergency Economic Powers Act (IEEPA). In addition to the global tariff, 57 countries faced increased tariffs ranging from 10% to 125%, based on assessments of nonreciprocal or discriminatory trading practices. 

Here are how some of the major countries are impacted through the U.S tariffs:

Country	Major Halal-Related Exports to U.S.	Tariff Impacts
Indonesia	Food products (seafood, coffee, spices), palm oil derivatives, modest apparel, rubber goods, pharmaceutical ingredients.	Lost preferential access after GSP lapse, meaning items like spices, footwear, jewelry now face tariffs of 10%.
Malaysia	Halal-certified processed foods (palm oil-based products, snacks), cosmetics and personal care, pharmaceuticals, modest fashion, electronics.	Also affected by GSP expiry – previously, Malaysian products like certain prepared foods entered the U.S. duty-free; now tariffs of 10% may apply, raising costs.
Turkey	Halal foods (confectionery, processed meats), textiles and apparel (including modest fashion), cosmetics, chemicals.	Overall, Turkey’s halal food exports to the U.S. (e.g. candy, packaged foods) face global tariffs (around 10%).
GCC (UAE, Saudi Arabia, Qatar, etc.)	Aluminum, petrochemicals, processed foods (e.g. dates, confectionery), cosmetics, jewelry.	The GCC region’s direct halal food exports to the U.S. are relatively small, but industrial exports like aluminum are significant. In 2023, the U.S. imported $1.61 billion of aluminum from the UAE. These are subject to the 10% tariff.
China	Gelatin and collagen (some halal-certified), food additives, flavor enhancers, herbal products, modest apparel, electronics.	Tariffs on Chinese goods are the highest with additional penalties amounting the % up to 125%.
India	Halal pharmaceuticals (APIs), herbal cosmetics, halal meat (buffalo), textiles and modest fashion, processed foods (e.g. spices, lentils, rice).	May face additional tariffs (to the account of 56%).

How Do New Tariffs Affect Exporters From the USA?

Here are how the new U.S. tariffs may impact exporters from the USA: 

1. Higher Costs for Imported Ingredients = Higher Production Costs

Many U.S.-based halal manufacturers rely on imported raw materials, such as spices from India, packaging from China, or palm oil from Southeast Asia. With tariffs up to 125% on countries like China and 10% on others, these input costs rise. The result of this would be U.S. exporters having to increase prices or absorb losses, making their products less competitive globally.

2. Retaliation From Other Countries Hurts U.S. Halal Exports

Countries hit by U.S. tariffs, like China, Turkey, and others, have responded with their own retaliatory tariffs. These can hit U.S. halal-certified meat, dairy, supplements, and processed foods especially hard. If China or the Middle East raises tariffs on U.S. beef or chicken, that directly hurts American halal meat producers.

3. Demand Drops 

Higher prices + retaliatory tariffs = reduced demand from countries. Even loyal buyers may shift to cheaper sources like Brazil, Australia, or Malaysia for halal meat or food products. Therefore, U.S. exporters risk losing market share, especially in regions like Southeast Asia and the GCC.

Next Steps for Manufacturers 

In conclusion, U.S. tariffs have posed challenges to the global trade sector, but they have also prompted halal-producing countries and organizations to innovate and adapt. Through strategic market shifts and policy engagement, manufacturers may be able to adjust to the “new normal” of international trade.