Trump’s Tariffs: 4 Food Products That May Get More Expensive If Trump Wins the Election
Although inflation has dropped to a three-year low of 2.5% as of the end of August, Americans are still experiencing sticker shock when buying groceries. The issue has become a hot topic on the campaign trail, and former President Donald Trump addressed the problem at a rally in Michigan last month.
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He said he would focus on U.S. farmers and block some imported food to reduce costs but didn’t go into much detail.
“Our farmers are being decimated right now … And, you know, one of the reasons is we allow a lot of farm product into our country. We’re gonna have to be a little bit like other countries; we’re not gonna allow so much. We’re gonna let our farmers go to work.”
However, Trump has been more open about imposing a blanket tariff of up to 20% on all imports, which experts say will increase the price of imported goods for consumers, including food.
“When the U.S. imposes a tariff on imports, it makes those products more expensive,” Faris Khatib, tax resolution and financial strategy expert, CEO of Ideal Tax, previously told GOBankingRates. “Companies that import these goods typically pass the extra costs to customers by increasing prices, which means you pay more for those goods.”
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Grocery Bills Would Likely Increase
The Center for American Progress Action Fund estimated that grocery bills could rise $90 via taxes and expect the following four foods to increase the most:
Fresh fruit: This includes the top four fruits imported into the U.S. — berries, avocados, bananas and grapes — but 60% of fresh fruit is imported.
Coffee: 99% of coffee consumed in the U.S. is imported, with the only exception being Kona, which is produced in Hawaii.
Fresh vegetables: The U.S. imports 38% of the fresh vegetables we consume.
Seafood: The U.S. imports 70% to 85% of seafood consumed here.
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How Imported Goods Could Be More Expensive
If Trump is reelected and imposes his current tariff policy, Americans will likely see a price increase on all imported products and food.
“If a 10% or 20% tariff is imposed, the cost of these items will simply increase,” Khatib said. “For instance, if you purchase a $1,000 laptop, a 10% tariff can add $100 to its price … With prices increasing on many goods, your money will not stretch as far.”
Expect American Households To Pay More Each Year
In addition to groceries, experts anticipate that Americans will pay much more each year if Trump serves a second term, although their calculations vary.
In August, the Center for American Progress released a report stating that a 20% tariff on imports would increase Americans’ costs by $3,900 annually.
The National Taxpayers Union shared that a 10% tariff would cost households $3,942 annually.
The Peterson Institute for International Economics concluded the average American household would pay over $2,600 more.
The Urban-Brookings Tax Policy Center recently calculated that middle-income households would pay about $1,800 more.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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