Trump’s trade war It has always had serious global economic impact targets. The latest announcement, along with the subsequent 90-day tariffs, affected the tariffs on thousands of imports imported by dozens of countries. Stock market rolls up But what does the expropriation of China and other countries mean Grocery Price?
Hours before the announcement of the latest Trump administration tariffs, CNET has Russell HillberryProfessor of Agricultural Economics at Purdue University to understand how “reciprocity” tariffs affect grocery costs for everyday American shoppers.
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If you just catch up, on April 2, President Trump announced High tariffs In dozens of countries including China, Japan and the EU. A few days later, the day the tariffs came into effect, he stopped the 90-day tariff. On the contrary, the comprehensive tariffs on Chinese imports increased to 145%, politics Report. In response, China increases tariffs on the United States To 125%, the U.S.-China trade war boiled.
While it is unclear whether the Trump administration will extend the 90-day pause on the remaining announced tariffs, high tariffs on China may still have an impact on U.S. food costs.
According to Hillberry, it’s everything about what’s going on right now and if additional tariffs go back into effect.
If Trump’s massive tariffs are achieved, your groceries may become more expensive.
Will the tariffs imposed by the United States lead to a rise in US consumers?
“Yes,” Hilbury said. “The United States gets different products from all over the world. The quantity of goods sold is certain, when they arrive at the port. [in the US]there are additional fees [or tariff] In addition to the value of the port. ”
This means that if an item is imported from China now, when the item arrives in the United States, the original purchase price will be charged an additional 145% of the fee when it arrives at the port. Most of the extra fees from tariffs are usually passed on to consumers.
If the tariff is 10%, he estimates that only about 8% of the extra costs will be passed on to the consumer, which won’t make much difference for the consumer, especially on low-cost items such as groceries. However, the greater the tariff, the greater the price rise.
Initially, tariffs vary. For example, the EU – where the United States has obtained many wines and cheeses – faces a 20% tariff, with more potential tariffs.
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Will grocery prices rise due to tariffs?
If all relevant taxes announced by Trump after a 90-day pause will take effect, Americans can expect to see an increase in grocery stores, which could change.
Although China is not a large-scale importer of the United States, many countries with tariffs were on April 9 (before the pause).
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Beware of soaring seafood prices
Seafood is a food category that can become more expensive from tariffs.
“That thing [the US] “There is no massive growth, especially fish and shrimp, mainly from Asia, India, Vietnam, similar places. So, these ports will rise 20% to 50% at ports, and there may be a little less at grocery stores,” Hillberry said.
Will certain products disappear together?
Tariffs can cause supply issues, resulting in shelves on shelves and fewer shopper choices.
According to Hilbury, this is possible if the tariffs come back in force.
“One thing the president doesn’t appreciate is that there are largely other buyers who can sell these things to,” Hilbury said. “So if we decide we don’t want them, they’ll sell them elsewhere. The supply chain may not justify the additional costs associated with the tariffs, so some things may not exist.”
Coffee and banana are two items that may increase costs
Most coffee beans are imported, which puts them at risk of price increases.
While most foods are still available, tariffs can lead to price surges and potential scarcity of major imports.
“Coffee and bananas will definitely come in, they will be more expensive,” Hillberry stressed. “I wouldn’t expect these things to go away, but I think you can expect fewer varieties available in supermarkets due to the tariffs. But the main impact will be on the price.”
Many avocados, tomatoes and berries consumed in the United States are grown in Mexico, so these products can also see price increases related to tariffs.
What are the opportunities for a comprehensive tariff resumption to take effect?
It’s not clear yet, but before the pause, Hillberry predicts that the Trump administration will waive tariffs because they’re too painful or that Congress will step in to stop the tariffs, which could happen if they re-instantly take effect.
“I really don’t think these are permanent features of the landscape,” Hilbury said. “But, you know, once the tariffs are raised, it does take a while for them to fall down again. So, I think from a food standpoint, things will be more expensive, less good, less quality, and some goods will go away.”
