KeHE Updates – June 2026

Update on Recent U.S. Tariff Developments

KeHE sent communications to suppliers who had a price increase due to tariffs and requested they follow these steps by June 19^th, 2026:

• Review your current tariff costs in light of the IEEPA tariff repeal and submit price decreases through the standard KeHE CONNECT Supplier Portal process
• If your prices are not decreasing, please provide an updated justification letter to suppliersupport@kehe.com with a subject that includes ‘Tariff’
• For questions or notifications regarding this communication, please send to suppliersupport@kehe.com with a subject that includes ‘Tariff’

KeHE is actively monitoring the recent U.S. tariff developments and assessing potential implications for product costs and pricing. Given the pace of regulatory change, our commitment is to provide clear, fact-based updates with a consistent and transparent approach. This notice summarizes (1) the current tariff landscape, (2) how KeHE will manage costs and customer price transparency, and (3) KeHE’s approach to potential tariff refunds.

Executive Summary:

• What changed: The Supreme Court ruled IEEPA tariffs unlawful. The U.S. Government launched a portal for Importers of Record to submit tariff refund claims; a temporary broad-based tariff has been announced under Section 122.
• What to expect: Impacts may vary by item and country of origin; price volatility may increase as suppliers evaluate the Section 122 tariffs and process IEEPA tariff refunds.
• Our actions: We will reflect verified supplier cost changes and provide recurring transparency; we will not speculate on refunds.

Background (current landscape)

On February 20^th, 2026, the U.S. Supreme Court ruled that the broad global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. Following the ruling, U.S. Customs and Border Protection (CBP) stopped collecting IEEPA‑based tariff February 24^th, 2026. On April 20^th, 2026, CBP launched the Consolidate Administration and Processing of Entries (“CAPE”) refund portal, allowing eligible importers to file claims for previously paid IEEPA tariffs. Initial refund processing will focus on unliquidated entries or recently liquidated entries, with more complex claims expected to be addressed in later phases. CPB will issue refunds within 90 days.

Separately, the U.S. government announced broad-based temporary tariffs under Section 122 of the Trade Act of 1974, described as up to ~15% and temporary (up to ~150 days unless extended by Congress); select exclusions may apply. Other tariff programs (e.g., Section 301 and Section 232) may continue independently and are not addressed by the IEEPA ruling.

KeHE’s Commitment to Cost and Price Transparency

Determining the impact of U.S. tariff changes is complex and will evolve as more formal guidance is issued and implemented. As a distributor, KeHE is generally not the importer of record for products we distribute. We rely on our supplier partners to evaluate tariff applicability and incorporate any verified duty changes into their pricing.

What you can expect from KeHE:

• KeHE will proactively ask suppliers who submitted tariff pricing changes to review and adjust their cost to KeHE to reflect current tariff rates.
• KeHE will pass through supplier cost changes attributable to tariffs in accordance with supplier effective dates and existing pricing mechanics. 
• KeHE will continue to provide a summary of tariff-related increases and reductions that flow through our system. 
• KeHE will implement pricing adjustments only when fully verified. 

Potential for Price Increases and volatility
Section 122 is broad-based, meaning some products that were not historically impacted under prior actions may now be affected. As suppliers determine product-level exposure (including country of origin and classification), KeHE is prepared and will continue to communicate price changes, inclusive of any tariff volatility which may arise, through our standard price change notification process.

KeHE will continue to require our supplier partners to provide price change justification letters that clearly outline whether the change is (1) a standard increase (related to increased raw materials, labor, transportation, or other costs), (2) change related to new or increasing tariffs, or (3) a combination of standard increase and tariffs. All price changes will continue to follow standard notice period requirements for KeHE and our customers.

KeHE’s Refund Policy
KeHE will not issue refunds unless and until KeHE receives a refund from a supplier that is specifically attributable to a tariff-related refund / adjustment. Refunds will be passed to customers, net of any administrative costs incurred by KeHE to facilitate the refund process.

EDI Compliance Program – Reminder

KeHE continues to improve operational efficiency and accuracy across our supply chain, including enhancements to our EDI requirements that were originally communicated on November 20^th, 2024. Thank you to all our supplier partners that worked to make these adjustments. For the remaining suppliers that are still working through the transition, EDI compliance will be required for all suppliers effective July 1^st, 2026.  After this date fees may be assessed for non-compliance.