A new round of import tariffs announced by President Trump is expected to drive up prices for a variety of grocery items, including seafood, coffee, fruit, alcohol, beef, rice, cheese, nuts, chocolate, and olive oil.
The latest round of import tariffs announced by President Trump is expected to lead to higher prices for a variety of grocery items. Economists say that nearly half of the products in a typical supermarket will be affected, with some items facing tariffs as high as 46%.
Tariffs are taxes imposed on imported and exported goods between countries.
They can range from a few percent to hundreds of percentage points, affecting international trade volumes and prices.
According to the World Trade Organization (WTO), tariffs have been used throughout history as a tool for economic protectionism and revenue generation.
In 2018, the United States imposed tariffs on over $500 billion worth of 'Chinese' imports, sparking a global trade war.
Tariffs can be fixed or adjustable, and their impact is felt by both consumers and businesses.
The Impact on Your Grocery Bill
Food industry analyst Phil Lempert estimates that up to 40,000 products will be impacted by the tariffs, including entire products and ingredients. This means that consumers can expect to see higher prices for a range of grocery staples.
The global seafood market is a significant contributor to the world's food supply, with over 160 million metric tons of fish and seafood consumed annually.
The industry is valued at over $140 billion, with the top producers being China, Indonesia, and the United States.
Aquaculture accounts for approximately 50% of global production, while wild-caught fishing provides the remaining 50%.
Seafood is a rich source of protein, vitamins, and minerals, making it an essential part of a balanced diet.
Tariff-Prone Foods: What You Need to Know
Here are ten grocery items you might want to keep an eye on, along with their country of origin and tariff rates:
Coffee is native to Ethiopia, where legend has it that a goatherd named Kaldi discovered its stimulating effects after noticing his goats became more energetic after eating red coffee cherries.
From there, coffee spread throughout the Arabian Peninsula and eventually the world, with the first coffeehouses opening in the Middle East in the 15th century.
Today, coffee is one of the most widely traded commodities globally, with over 2.25 billion cups consumed daily.
- Seafood: Imported from Chile (10%), India (26%), Indonesia (32%), and Vietnam (46%). The US imports up to 85% of its seafood.
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Coffee: Primarily imported from Brazil (10%) and Colombia (10%). The US is the world’s largest importer of coffee, with about 80% of U.S. roasted imports coming from Latin America.
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Fruit: Imported from Guatemala (10%), Costa Rica (10%), and Peru (10%). Guatemalan bananas are a leading export to the US, while Costa Rican pineapples and avocados are also popular.
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Alcohol: Wine is subject to tariffs of up to 20% from the European Union (France, Italy, Spain) and New Zealand. Beer will be affected by tariffs on Mexico and China. Tequila imports from Mexico have seen a surge in recent years.
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Beef: Imported from New Zealand (10%) and Australia (10%). Although 90% of beef consumed in the US is domestically produced, tariffs will likely add to existing price pressures.
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Rice: Primarily imported from Thailand (36%) and India (26%). Nearly a third of rice sold in the US is imported, mainly jasmine rice from Thailand and basmati rice from India.
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Cheese: Subject to tariffs of up to 20% from Italy, France, Spain, and the Netherlands. Parmigiano-Reggiano, brie, and Gouda could see price rises.
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Nuts: Cashews, pecans, and macadamia nuts are likely to see significant price increases due to tariffs on Vietnam (46%), Côte d’Ivoire (21%), Brazil (10%), Thailand (36%).
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Chocolate: Imported from Côte d’Ivoire (21%) and Ecuador (10%). The Hershey Company sources its supply from multiple countries, including Brazil, Cameroon, and Peru.
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Olive Oil: Subject to tariffs of up to 20% from the European Union (Spain, Italy, Greece). Olive oil prices have already risen significantly due to weather and political issues in Africa.
