U.S. President Donald Trump’s %Tariffs could lead to higher prices on certain foods, according to industry experts.
Tariffs are a tax on foreign nations that are paid by domestic companies that import goods or services.
As such, U.S. consumers are expected to pay higher prices for imported products that have tariffs applied to them, including foreign food and beverages.
A Tax Foundation analysis found that Americans are expected to pay higher prices for items ranging from Brazilian coffee and French wine to bananas grown in India.
Many of the imported foods facing import duties have limited U.S. production and can’t meet American demand from domestic sources.
In 2024, America’s food imports totaled $221 billion U.S. Most of these products already face tariffs ranging from 10% to 30%.
However, new duties in excess of 30% for some countries are expected to hit consumers in their wallets, says the Tax Foundation.
The top imported foods into the U.S. by volume that could face tariffs are alcohol, baked goods, coffee, and fish.
American grocery prices were about 2.4% higher in June than a year earlier, according to the latest inflation data.
However, most economists agree that the full impact of Trump’s tariffs is not yet reflected in consumer prices.
A separate analysis by The Budget Lab at Yale University estimated that tariff price increases will raise food costs by 3.4% in the short-run and 2.9% in the long-run.
A rise in food prices could negatively impact sales of major grocery retailers such as %Walmart (NYSE: $WMT), Kroger (NYSE: $KR), and %Costco Wholesale (NASDAQ: $COST).
