On April 2, President Donald Trump announced a sweeping tariff hike on all imported foreign goods into the United States on what he called “Liberation Day.” These tariffs were meant as an attempt to stimulate American production and encourage businesses to use American-made goods, but have ultimately sent the global economy into disarray.
Trump’s tariffs are targeted at all foreign goods, which has caused business owners from both America and foreign countries to enter a frenzy. Stocks have dropped dramatically, and many Americans’ life savings have taken a hit.
Tariffs are a tax on the American businesses that are importing goods. Because businesses are being charged more to import goods, they must sell these goods at a higher price. Wondering how will food prices be affected by tariffs? Among the goods that will rise in price are many foodstuffs, both fresh and manufactured. Here is a list of some foods affected by tariffs in the near future.
Coffee
The U.S. is the second leading importer of coffee in the world, with less than 1% of coffee actually being produced domestically. All American coffee originates from Hawai’i, where Kona coffee production is low and is only decreasing.
About 80% of imported coffee comes from Latin America. Brazil and Columbia are the two countries that the U.S. imports the most coffee from, and tariffs are planned to raise to 10% for both countries. Coffee prices might be high right now, but expect them to increase even more.
Chocolate
The U.S. does not have the proper climate to produce cocoa beans, which is where all chocolate is derived from. With the exception of a few small producers in Hawai’i, U.S. cocoa production is next to nothing. Most imported chocolate comes from Latin American countries — all of which now have higher tariffs.
Cheese
Popular European cheeses such as Parmigiano-Reggiano, Brie, manchego, Gouda, and more are expected to rise in price. Many European cheeses undergo special extensive processes that are difficult to replicate. Tariffs on imported goods from the European Union are going up to 20%.
Fruit
The U.S. imports 60% of its fresh fruit from other countries. Tropical fruits such as avocado, mango, papaya, banana, pineapple, melons, and more will take a big hit. Mostly imported from Latin American countries, the U.S. simply does not have the proper climatic conditions to produce these fruits at a mass scale. Tariff hikes in producer countries range from 10% to 18%.
Seafood
About 80% of U.S. seafood consumption comes from abroad. Canada, Chile, India, Indonesia, and Vietnam are the largest suppliers of seafood, and all of these countries are subject to tariff hikes — 25%, 10%, 26%, 32%, and 46%, respectively.
Alcohol
Wine is mostly produced in the European Union (20%) and beer mostly comes from Mexico (25%), the Netherlands (20%), Ireland (20%), and Canada (20%). In fact, most hard liquors like Aperol and Mexican tequilas are slated to increase in price as well. Also note that most cans are produced in China (34%), so if you drink beer from the can, expect those to skyrocket in price.
Olive Oil
Olive oil is mostly produced in the European Union (20%), namely Italy and Spain. The U.S. California produces 99% of the U.S.’s olives, but only accounts for a small fraction of overall olive oil consumption.
With Trump’s tariffs, you can expect your grocery bill to be a lot higher than you’re used to. Time will only tell to see if Trump decides to back off of his decision.