Key Takeaways: New York Sugar Week 2026

Last week the sugar trade gathered in bustling NYC to network and to gather opinions on the current risks, challenges, and opportunities in the global market.

Some Key-Takeaways...

 Over-Quota (Higher Tier) Tariffs

Imports exceeding the TRQ are subject to a Tier 2 tariff of 15.36 cents per pound for raw sugar and 16.21 cents per pound for refined sugar.

Domestic producers are currently lobbying for an increase in Tier 2 tariff rates, arguing that global oversupply has made current rates "ineffective" at protecting local prices

Will they be successful?

A recent 2028 quote for refined sugar was 4c/lb higher than 2027 pricing. This offers some evidence that the domestic producers expect to prevail. But it also indicates that any increase will not happen for another year.

Reciprocal and Targeted Tariffs

On February 20, 2026, the Supreme Court struck down many tariffs enacted under the International Emergency Economic Powers Act (IEEPA), ruling that the executive branch had exceeded its authority.

There is some speculation that the administration will announce new tariffs in July under different authorities, using the argument that they are needed to protect the domestic producers from low world sugar prices.

Additionally, the 16/11 spread has continued to widen. Frank Jenkings indicated it has become 2 c/lb more expensive over the past few weeks for someone to import sugar, even though nothing has changed. That is the market starting to price in this tariff risk, which Frank also noted wouldn't even come close to covering the full duty if in fact, it does come to fruition.

Forfeitures

Forfeitures are nearly certain; the level depends upon the amount of the tariffs, which would occur around August 1st.  The amounts being ’threatened’ if the tariffs don’t go their way are extreme. While we don’t want to be purveyors of rumors, one beet seller mentioned the possibility of 300K MT’s being forfeited.  Interestingly enough, the WASDE removed 300K MT out of the beet crop for 2026/2027.  A coincidence? Or the USDA dialing in the rumored forfeiture.

Prices Have Only One Way to Go

So whether there are new tariffs or forfeitures, prices are going up, and customers should not be uncovered come that date in July.  Don't be caught unaware and unprepared.

Though the event took place in NYC, all the action is happening in Washington, DC.

CSC Trading and Sugaright are keeping a close eye on opportunities and risks arising from market uncertainty. And of course, because we source sugar both globally and domestically, we are your best option for reducing supply risk.