General Mills says U.S. might run out of sugar

General Mills says the United States might “virtually run out of sugar” if the Obama administration doesn’t loosen tariffs on imported sugar, Reuters reports.

The Golden Valley company is one of several large food-makers that signed a letter last week to U.S. Ag Secretary Tom Vilsack urging sugar trade reform. The Wall Street Journal explains that current policy artificially inflates the price of U.S. and Mexican sugar by charging tariffs on imports from other countries.

The food companies, which included Kraft and Hershey, are threatening to increase prices and layoff workers if the government doesn’t allow cheaper imported sugar.