Price of groceries expected increase as Trump trade war intensifies, expert says
Tariff war could soon cause price hikes at the grocery store
The trade war triggered by President Donald Trump’s steep tariffs on Canada and Mexico are expected to cause the price of many goods to go up and one of the first places Americans are likely to feel the pinch is at the grocery store.
ALEXANDRIA, Va. - The trade war triggered by President Donald Trump’s steep tariffs on Canada and Mexico are expected to cause the price of many goods to go up and one of the first places Americans are likely to feel the pinch is at the grocery store.
How Soon?
What they're saying:
Experts say grocery store items with short shelf lives that are restocked frequently and have thin profit margins are most in jeopardy of increasing in price within the next 7 to 10 days.
The items include fruits, vegetables and some alcohol and spirits, according to financial strategist William Dendy.
"We're going to see the cost of avocados, which is heavy for Mexico, tomatoes, strawberries," Dendy said. "With the tariffs being at 25%, and the average margins on what grocery stores are keeping for themselves, we will probably see a 20% or so increase in the cost of all these goods."
That 20% comes on top of the already-inflated prices of goods.
Dendy goes on to say beyond the expected cost increase for their fresh produce, shoppers should expect to pay more for corn, wheat, chicken and beef due to the newly imposed tariffs and reciprocal tariffs mandated by the Trump administration.
Organizations Push Back
What's next:
The National Grocers Association released a statement Wednesday morning after President Trump’s address to Congress saying, "the NGA urges continued dialogue between the US, Canada and Mexico to quickly resolve trade imbalances."
"What I’ve heard is that it’s going to be more expensive," Alexandria resident Dazsdya Hall said. "I’m hoping it doesn’t get crazier."
The National Grocers Association points out amid the tariffs, independent grocers are facing cost pressures including skyrocketing credit swipe fees.
"As the White House engages in negotiations with our trading partners, it is critical that the Administration simultaneously take decisive action to address the most significant cost pressures facing independent grocers, including skyrocketing credit card "swipe fees," lax antitrust enforcement, and burdensome regulations. Resolving these complex issues with urgency and strategic foresight is essential to stabilizing grocery prices and ensuring independent grocers can continue to serve their communities with affordable and accessible food," the NGA wrote in its statement.