Write an article about

A customer shops for produce at an H-E-B grocery store in Austin, Texas, on Feb. 12, 2025.

Brandon Bell | Getty Images

Shoppers will likely pay more for coffee, bananas, vanilla and toilet paper over the coming weeks as the Trump administration’s new tariffs go into effect.

The U.S. plans to hike tariff rates on goods imported from more than 180 countries and territories in the hopes of bringing jobs back stateside. However, some “critical” ingredients and materials found in food, drinks and goods used daily by U.S. consumers are not available domestically, according to the Consumer Brands Association, an industry trade group that represents Coca-Cola, Procter & Gamble, Target and other consumer giants.

“However well intended, the success of the President’s America First Trade Policy, must recognize the U.S. companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically,” Tom Madrecki, vice president of supply chain resiliency for the CBA, said in a statement. “Reciprocal tariffs that do not reflect ingredient and input availability concerns will inevitably raise costs, limit consumer access to affordable products and unintentionally harm iconic American manufacturers.”

On CNBC’s “Squawk Box” on Thursday morning, Commerce Secretary Howard Lutnick brushed off the idea that countries could win exemptions for specific goods. But the CBA is seeking exemptions for key ingredients and materials slapped with tariffs to keep prices down for its members and their customers.

For one, the U.S. climate limits the production of some staples of the U.S. diet, such as coffee, cocoa and tropical fruits, according to the CBA. The U.S. was the top global importer of bananas in 2023, based on Observatory of Economic Complexity data. Nearly 40% of those bananas came from Guatemala, which will face a 10% tariff on goods exported to the U.S.

Trader Joe’s has long bragged about not raising the price of its bananas, as seen in this photo from 2014. 

Rj Sangosti | Denver Post | Getty Images

Spices will also become pricier for home cooks and bakers because of climate limitations, the CBA said. For example, Madagascar accounts for more than three-quarters of U.S. imports of vanilla, which is already the second-most expensive spice in the world. Exports from Madagascar will be subject to tariffs of 47%.

Shares of spice purveyor McCormick were down less than 1% in afternoon trading on Thursday. The company plans to offset tariffs through “some very targeted price adjustments” and a broader cost-savings program, McCormick executives said in late March.

In other cases, decadeslong shifts in the U.S. agricultural system mean domestic supply will not be able to meet demand easily.

For example, more than 90% of oats milled for food in the U.S. come from Canada to be turned into cereal, the CBA said. But U.S. oat acreage peaked more than a century ago and has been declining in the decades since then, according to the U.S. Department of Agriculture. The domestic food system can no longer grow, store or transport U.S. oats at the scale necessary to meet demand, the CBA said.

Shoppers will likely also find themselves paying more for inedible household staples. Toilet paper, diapers, lotions and shampoo could become more expensive as manufacturers pass on the increased costs for wood pulp, bamboo fibers, shea butter and palm oil, according to the CBA. For example, the U.S. imports most of its palm oil supply from Indonesia, which now faces a 32% duty.

Markets plunged on Thursday in response to the tariff announcement. However, stocks in the consumer staples sector, which includes many of the CBA’s members, rose in afternoon trading as investors ditched riskier bets for the relative safety of household necessities.

Shares of Procter & Gamble climbed more than 1%, while Coke’s stock was up 2%. General Mills’ shares ticked up 3%.

Don’t miss these insights from CNBC PRO

remove and CTA’s or button or links from it .Organize the content with appropriate headings and subheadings (h1, h2, h3, h4, h5, h6). Include conclusion section and FAQs section at the end with questions and answers. do not include the title at start of article. it must return only article i dont want any extra information or introductory text with article e.g: ” Here is rewritten article:” or “Here is the rewritten content:”

Boeing CEO Outlines Plan to Address Safety Concerns

Boeing CEO Kelly Ortberg testified before the Senate Commerce, Science, and Transportation Committee on Wednesday, outlining the company’s progress on improving its manufacturing and safety standards. The hearing comes after a January 2024 mid-air emergency involving a new 737 MAX, which left Boeing’s factory without key bolts installed.

Ortberg faced questions from lawmakers about how the company will ensure that it doesn’t repeat past accidents or manufacturing defects. Senator Ted Cruz, the committee’s chairman, invited Boeing managers and factory workers to report to him their opinions on the company’s turnaround plan.

Boeing’s Commitment to Safety

Ortberg acknowledged that Boeing still has more to do, but emphasized the company’s commitment to safety. "Boeing has made serious missteps in recent years — and it is unacceptable. In response, we have made sweeping changes to the people, processes, and overall structure of our company," he said. "While there is still work ahead of us, these profound changes are underpinned by the deep commitment from all of us to the safety of our products and services."

Improvements Across Manufacturing Lines

Ortberg and other Boeing executives have outlined improvements across the manufacturer’s production lines in recent months, including a contract worth more than $20 billion to build the United States’ next generation fighter jet. However, lawmakers and regulators have maintained heightened scrutiny on the company, a top U.S. exporter.

Federal Aviation Administration Oversight

The Federal Aviation Administration (FAA) capped Boeing’s production of its 737 Max planes at 38 a month following the January 2024 door plug blowout. The agency plans to keep that limit in place, though Boeing is producing below that level. Acting FAA Administrator Chris Rocheleau said at a Senate hearing last week that the agency’s oversight of the company "extends to ongoing monitoring of Boeing’s manufacturing practices, maintenance procedures, and software updates."

Conclusion

Boeing’s commitment to addressing safety concerns is a critical step in rebuilding trust with lawmakers, regulators, and the public. While the company still faces challenges, its progress on improving manufacturing and safety standards is an important step forward.

Frequently Asked Questions

Q: What is Boeing’s plan to address safety concerns?
A: Boeing CEO Kelly Ortberg outlined the company’s plan to improve manufacturing and safety standards, including sweeping changes to the company’s people, processes, and overall structure.

Q: What is the Federal Aviation Administration’s role in overseeing Boeing?
A: The FAA is responsible for monitoring Boeing’s manufacturing practices, maintenance procedures, and software updates, and has capped the company’s production of its 737 Max planes at 38 a month.

Q: What is Boeing’s production rate of 737 Max planes expected to be in 2025?
A: Boeing CEO Kelly Ortberg said the company could produce up to 38 737 Max planes a month this year, but would not push the production line if it’s not stable.

Lilly Sues Pharmacies for Compounding Zepbound and Mounjaro

Lawsuit Claims Pharmacies are Skirting FDA Ban and Luring Patients Away from FDA-Approved Treatments

Eli Lilly is suing two pharmacies, Strive Pharmacy and Empower Pharmacy, for compounding Zepbound and Mounjaro, claiming that the companies are falsely marketing their products as personalized versions of the drugs. The lawsuit alleges that these claims are turning people towards compounded drugs and away from Lilly’s FDA-approved treatments.

Background on Compounding Pharmacies and FDA Regulations

Compounding pharmacies and outsourcing facilities were largely supposed to stop making their own versions of tirzepatide, the active ingredient in Lilly’s weight-loss drug Zepbound and diabetes treatment Mounjaro, last month after the FDA determined the branded versions were no longer in shortage. Some continued compounding, tweaking the dosages and combining them with vitamins, distinctions that make them different from Lilly’s drugs and potentially allow them to skirt the FDA’s ban.

Lilly’s Allegations

Lilly argues that Strive and Empower are merely mass producing altered versions of tirzepatide rather than personalizing them. Branded drugs are allowed to be compounded at large scale when they’re in shortage. Outside of that, custom versions can be made for unique situations, like if a person is allergic to an ingredient or can’t take the form of the drug it’s normally sold in.

Reactions from Pharmacies and Telehealth Sites

Strive and Empower have responded to the lawsuit, with Strive calling Lilly’s lawsuit a classic example of Big Pharma overstepping legitimate regulations to prioritize its own interests. Empower, on the other hand, stated that restricting access to personalized alternatives to commercial drugs is not in the best interest of patients. Telehealth sites like Mochi Health and Lavender Sky Health have also issued statements, with Mochi expressing confidence in the integrity of its clinical approach and Lavender Sky Health not responding to a request for comment.

Conclusion

This lawsuit will be the first test of Lilly’s ability to take on compounding pharmacies in court now that Zepbound and Mounjaro are off the FDA’s shortage list. The outcome of this case will provide a roadmap for other pharmaceutical companies, such as Novo Nordisk, whose drugs can also be compounded after the end of May.

FAQs

Q: What is compounding?
A: Compounding is the process of customizing a drug to meet an individual patient’s needs.

Q: Why is Lilly suing Strive and Empower?
A: Lilly is suing Strive and Empower for allegedly skirting the FDA’s ban on compounding and luring patients away from FDA-approved treatments.

Q: What is the FDA’s stance on compounding?
A: The FDA has determined that branded versions of tirzepatide are no longer in shortage, and therefore, compounding pharmacies and outsourcing facilities are no longer allowed to make their own versions of the drug.