Market movements and trends

Pricing is beginning to reflect new tariffs set in Q2 of 2025.

Our remaining stock of pre-tariff material is mostly committed to contracts at this time. We expect new tariffs announced at the beginning of August to start impacting our offers in the coming months.

Despite these additional expenses from all product origins, demand remains strong, which we expect to hasten the impact of recently announced tariffs as stock needs to be replenished sooner.

Certain products, like Gum Arabic, originate in countries experiencing significant socio-political unrest, which has impacted availability and pricing above and beyond tariffs on the nations it largely originates from. Our team has been pragmatically working to mitigate sudden pricing changes with this product, but we caution customers that conditions are subject to change at any time.

As we approach bidding season for 2026 blanket contracts, our offers will be taking into account both the most recent harvest for the given product, and the expected tariff rate for the country of origin. We remain committed to providing our customers with our most competitive pricing, including visibility on the impact tariffs have on the cost of goods.

####

AEP Colloids is a privately owned water soluble gum distributor and manufacturer based in upstate New York. Our product line includes both conventional and organic ingredients meant for a range of applications – including pharmaceutical, food, pet food, and technical sectors. We create and manufacture custom stabilizers for specialized applications.