The average American is just starting to notice what a bad idea Trump’s Tariffs were, after all. And there has been a specific response in the mainstream media spotlighting just how much tariffs are likely to cost Americans this year.
Focus on produce
It should come as no surprise that the focus on food price increases due to Trump’s tariffs is increas-ingly on fresh produce. And, according to a new report from the Yale Budget Lab, increases on fresh foods imported from best-trading-partners Canada, Mexico and China could trigger a jump of as much as 5 percent in overall food costs over this calendar year.
The bad news…
… Is that, unmitigated, this factor alone could drive up overall food prices by as much as (US)$4,9000 by the end of the year.
The good news is…
… Is that, careful budgeting, changes in food choices and changes in dining habits, the impact of tariffs could be limited to as little as $2,600.
Alas…
… “The impact of these rising costs will fall disproportionately on lower-income households,” a Food & Wine analysis of the report points out. “[Those] who already spend a larger share of their income on food may have less flexibility to absorb or avoid the increases.”
Overall
“The USDA anticipates the most significant price increases in fruits and vegetables, dairy, and sugar-related products.”
As F&D concludes… “As these new tariffs take effect, food inflation may not be as steep as in recent years — but it’s not over. For many households, the challenge now is figuring out how to stretch the same grocery budget just a little further. Again.”
My take
The new Yale Budget Lab Report just reinforces the findings of other recent surveys on food price in-creases driven by Trump’s tariffs… The most severe impact of tariffs is falling on those at the lowest income levels – the folks who can least afford any further increases. And overall food cost increases driven by inflation in general are not over, yet.
Reading between the lines, the Report also confirms that the middle class is being increasingly im-pacted by higher food prices, reporting greater pressure on their budgets, food choices and dining habits. In other words, the marginally richer are getting poorer…
~ Maggie J.