One of the primary rationales for raising tariffs is to get more made on U.S. soil.
Adding to import costs should give U.S. companies more incentive to buy the stuff they need here instead. And then they could avoid the tariffs — and having to pass those costs on to their customers.
But as a new layer of tariffs takes effect this week, economists point out that this isn’t always an option, particularly with food. While manufacturers might replace imported materials with domestic alternatives, we can’t grow or produce everything we eat and drink here in the U.S. And the ongoing trade war will affect 74% of all imported foods, according to new estimates from the Tax Foundation.
Take bananas, which have already jumped in price this year, passing previous record high averages from 2022. The U.S. relies heavily on banana imports from Central American countries because Florida and Hawaii — among the few places in the U.S. with the proper climate to grow them — can’t supply the entire nation, according to the Tax Foundation.
Or there's coffee from Brazil, which beginning this week faces an additional tariff of 40%, for a total of 50%. How much is that nutty, slightly chocolatey flavor profile worth if there’s no way to replicate it with a bean grown domestically?
In other words, a U.S. company can potentially soften the blow of tariffs by replacing imported aluminum with domestic aluminum to make a soda can. But it’s often more complicated with food. Between climate and capacity constraints — and the unique features of many imported foods — it may be impossible to meet demand with domestic alternatives.
Last year, the U.S. imported about $221 billion in food products, $163 billion of which would have been hit by this year’s new tariffs, according to the Tax Foundation’s analysis. The five categories the group projects will be hardest-hit are, in order: liquors and spirits, baked goods, coffee, fish, and beer.
So what? New tariffs may create a particular challenge with food prices, which have already risen 30% since the pandemic, including 3% in the last year, according to the latest Consumer Price Index. But being careful and deliberate with your choices can help limit additional costs. Here are a few ideas:
• Buy seasonal, domestic produce whenever possible, including at your local farmers’ markets. You may end up cutting back on bananas, but there are plenty of fruits and vegetables more commonly grown in the U.S.
• Consider store brands. Cheaper off-brand versions of many grocery items can help temper the effect of price hikes. And they’re often the same product in different packaging.
• Stock up when grocery items are on sale. Look for deals on anything that stores well. A full cupboard can ease a lot of anxiety.
• Explore online or warehouse club deals. Look for lower per‑unit pricing to offset tariff‑driven increases.
• Check your fridge and calendar before you shop. The average consumer wastes more than $700 worth of food per year. These steps can help you avoid buying perishables you don’t need or won’t use in the week ahead.
Related Reading
• New Poll From AP Shows Many Americans Stress About Grocery Prices (ABC 10 News)
• What Trump's New Tariffs Mean for Grocery Prices Now (Eat This, Not That)
• Grocery Inflation Hacks: How to Fill Your Fridge for Less (SoFi)
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