Tariffs Will Likely Raise Food Prices for Americans -

President Trump announced a 10 percent across the board tariff effective immediately today — essentially extra taxes on products imported into the United States — for most countries except China, for which he imposed a 125 percent tariff.

Tariffs for the other countries could still go higher, but the president said he has paused these higher tariffs for the next 90 days.

What will this mean for the price of foods, especially pantry staples, healthy favorites, and non-negotiables like coffee and chocolate?

Grocery prices have already gone up more than 20 percent since the COVID-19 pandemic, says David Ortega, PhD, a professor and chair in food economics and policy at Michigan State University in East Lansing.

“The new round of tariffs being imposed now threatens to push food prices even higher. Since the U.S. relies on other countries for many seasonal food products, these costs will ultimately get passed on to American consumers,” he says.

For foods that we either don’t produce domestically or can’t harvest year-round, tariffs will directly raise the price at the grocery store, says Dr. Ortega.

“This is especially concerning at a time when consumers are already feeling stretched by higher prices across the board,” he says.

While higher prices may affect healthy and unhealthy foods alike, they may hit your wallet hardest when it comes to already spendy so-called superfoods — items especially high in nutrients and antioxidants that help protect you from conditions like heart disease and cancer.

Chocolate

Dark chocolate is a two-for-one powerhouse — not only does it help satisfy a craving for sweets, it’s also rich in antioxidants and packed with nutrients. It’s even been linked with reducing the risk of heart disease and boosting cognitive health.

The United States imports chocolate from several countries. About one-third comes from the Ivory Coast and Ecuador.

One of the largest importers of cocoa beans, the Hershey Company, gets their supply from Brazil, Cameroon, Colombia, Dominican Republic, Ecuador, Ghana, Indonesia, Ivory Coast, Nigeria, Papua New Guinea, and Peru.

Most of those countries would fall in the baseline 10 percent tariff zone, which will likely translate into a bump in how much our favorite chocolate bar costs, says Ortega.

Olive Oil

Olive oil is a must-have for home chefs and a staple in the Mediterranean diet. The oil mostly consists of heart-healthy unsaturated fats, and using it to sauté your veggies has even been shown to help your body absorb fat-soluble vitamins like A, D, E, and K.

Although you’ve probably seen California-made extra-virgin olive oil in the grocery store, U.S. production of olive oil makes up a mere 2 percent of what we use each year. America imports most olive oil from the European Union, particularly Spain, Italy, and Greece.

Given the 10 percent tariff rate for the EU, American consumers will likely see a cost hike, says Ortega.

“Olive oil prices have gone through the roof,” food industry analyst and supermarket guru Phil Lempert told NPR. “They’re going to go even higher.”

Berries

Blueberries (especially wild blueberries), strawberries, and blackberries offer a bevy of benefits. Not only are they packed with fiber and vitamins, berries also have anti-inflammatory properties that have been linked with better brain health and cancer prevention.

Although which countries and which items will be subject to tariffs has been a bit of a moving target, it appears that for right now, produce from Mexico won’t come with the extra tax because they are included under the United States-Mexico-Canada Agreement. Given that Mexico is the leading foreign supplier of raspberries and strawberries to the United States, that’s good news — at least for now.

The United States also gets 15 to 20 percent of berries from Peru and Chile, and the 10 percent tariff will hold in those countries.

That means a quart of strawberries that costs $6 could rise by about 60 cents.

Coffee

Health benefits might not be the first reason a lot of us reach for our morning cup of coffee, but it comes with plenty. Not only does coffee give us an energy boost, it may also reduce the risk of type 2 diabetes and neurodegenerative diseases like Alzheimer’s disease and Parkinson’s.

Although a small amount of coffee is produced in Hawaii, the United States gets almost all of its coffee from other countries. More than 80 percent of U.S. roasted imports come from Latin America, mostly Brazil and Columbia.

All those countries are subject to the 10 percent baseline tariff, and that means the price of coffee beans and a cup of coffee at our favorite café will likely rise, says Dawn Thilmany, PhD, a professor of agricultural and resource economics at Colorado State University in Fort Collins.

“For many foods or beverages, when the price of an item goes up, we can often find a suitable less expensive substitute. Not so with coffee — and that makes a rise in cost difficult, especially for people whose food budget is already stretched thin,” says Dr. Thilmany.

Avocados

The unsaturated fats found in avocados are good for heart health. They’re also a delicious source of fiber — a whopping 13.5 grams in just one medium avocado.

But avocados are already one of the pricier produce items in our shopping carts. Could their cost go even higher due to tariffs?

Nope, at least not for now, because the United States gets nearly 90 percent of its fresh avocados from Mexico, and like berries, for now they will remain tariff-free.

Nuts

Nuts are a classic go-to healthy snack. They’re easy to keep on hand in an office drawer or purse, and because they are full of protein and fiber, they help us feel full for longer. Some types like cashews and almonds may even improve our heart health or help with weight management.

The cost of most nuts will likely go up, as many come from foreign countries including Vietnam, Thailand, and Ivory Coast.

One exception: almonds. About 80 of the world’s almonds are produced in California, so their price is unlikely to be affected.

Bottom Line: Your Whole Grocery Bill Will Probably Go Up

Lempert estimates that with the latest tariffs “probably almost half of the products in a supermarket — about 40,000 products — will be affected by these tariffs, whether it’s the entire product or just an ingredient.”

Or even the packaging, points out Thilmany. “For example, tariffs on products like aluminum will make items sold in cans more expensive,” she says.

People in the United States who are food insecure will feel these higher costs the most, says Thilmany.

One potential silver lining? “The higher costs may inspire some of us to shop smarter and reduce food waste,” she says.

Source link