Advocacy in Action | December 4, 2025
Webinar: State-by-State Impacts of New Federal Tax Law
🗓️ December 4, 2025
🕑 1PM
📍 Register Here
Join the National Restaurant Association for a policy webinar breaking down how states are responding to the new federal tax laws.
The webinar explores:
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How state-level tax codes may respond
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What the means for your bottom line
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How to prepare for the opportunities and challenges ahead
Tariff Update: New Exemptions
A major victory for restaurants and the food supply chain: President Trump signed an Executive Order removing certain food and agricultural items from reciprocal tariffs.
Per the EO and Fact Sheet, these products are now exempt from reciprocal tariffs:
- Coffee and tea
- Avocados, bananas, oranges, tomatoes
- Tropical fruits and fruit juices
- Cocoa and spices
- Beef
- Additional fertilizers
- Many other products
This is a win for our industry, lowering costs and offering greater flexibility for sourcing. This change is effective retroactively to November 13. U.S. Custom has issued guidance here. If duties have already been paid, refunds can be requested through Customs and Border Protection's normal process. Operators should review invoices for impacted products and contact their suppliers about pricing adjustments.
The National Restaurant Association has been advocating for food and beverage exemptions in all tariffs, and remains committed to working with the Administration to address remaining tariffs, including country-specific and alcohol-related ones, to keep restaurant prices affordable and supply chains strong for businesses and diners alike.
Via & Mastercard Settlements
Visa and Mastercard have announced a revised $38 billion settlement with merchants over allegations of excessive credit card fees, aiming to resolve 20 years of litigation accusing the networks and issuing banks of antitrust violations, including “swipe fees.” This is the third proposed settlement stemming from a 2005 class-action lawsuit, following two earlier deals that were rejected by the courts.
The Merchants Payment Coalition, led in part by the National Restaurant Association, has urged that this latest settlement also be rejected.
New IRS Guidance for Qualified Tips & Overtime
The Treasury Department and the Internal Revenue Service (IRS) released new guidance for individual taxpayers who can claim the recently enacted federal income tax deductions for qualified tips or qualified overtime compensation for tax year 2025.
Crucially, the guidance illustrates how workers can determine the deduction amount without receiving a separate accounting from their employer on tax return forms such as Form W-2, Wage and Tax Statement, or a Form 1099.
Employees may see new tax forms, as the IRS is updating individual income tax forms and instructions for taxpayers for tax year 2025 (such as a new Form 1040, Schedule 1-A, Additional Deductions).
State Economic Updates
Catch up on the latest editions of the Connecticut Economic Update from Scan Scanlon, State Comptroller.
November’s update includes an deep dive into retail trends and consumer spending. The report also raises caution that seasonal hiring for the holiday period may be weaker than last year.
December’s update highlights both opportunities and risks tied to rapid advances in artificial intelligence, as well as a look into the continuing pressure on the labor market.
New Appropriations Bill: National Threshold for Hemp Products
In November, Congress passed an appropriations bill establishing a new national threshold for hemp products: no more than 0.4 mg of total THC per container. This change will ban sales of hemp-derived items, like drinks, that exceed the new limit.
According to Restaurant Business, hemp-THC products are a $28.3 billion industry producing seltzers, sodas, shots, spirit analogues and more annually.
The industry has one year to adapt before the law is fully enforced. Federal agencies may issue guidance or enforcement policies, and states can align their rules. Congress could revisit or adjust the language, though no changes are currently planned.
The National Restaurant Association is talking with members and supply chain partners about the change, so that they can talk with Congress about how it will impact a growing segment of the industry.