
How Tariffs Could Change Your Grocery Shopping Experience
November 17, 2024 | Source: Chowhound | by Buffy Naillon
Among the biggest promises that came out of Donald Trump’s presidential campaign were 100% tariffs on Mexican goods, 60% tariffs on Chinese imports, and 20% tariffs on everything else. The idea behind the tariffs seems solid. They’re meant to encourage more manufacturing on American soil, decrease the national debt, and — maybe most important for struggling Americans — put more food on the table at lower prices.
However, according to the think tank Third Way, the proposed tariffs come with hidden costs that won’t favor American wallets. Americans will be paying out, on average, $736 more by the end of the year between the additional grocery costs ($185) and the increased prices in big-box stores ($551). Overall, Third Way expects a price increase of 3.3% instead of a drop in prices.
Tariffs have the potential to spark price hikes because of how imports work. Tariffs cause manufacturers and retailers to pay more for the imported goods on their end. In turn, they pass the price increases onto consumers. The problem is exacerbated by the soft consumer spending that sometimes arises from these types of price increases. More plainly, if consumers have to pay more for food and other necessities, they spend less on other things because their dollars only stretch so far. That makes for a more sluggish economy.