Trump's trade war is a wild moving goal with serious global economic implications. The latest announcement and subsequent 90 -day break on tariffs affecting thousands of imports from dozens of countries have sent it Providing the stock market But what could mean tariffs for China and other food countries and Grocery prices?
Hours before the latest Trump administration break was published, CNET spoke Russell HilburyProfessor of Agricultural Economics at Purdue University, to learn how “reciprocal” tariffs can affect the cost of groceries for daily US customers.
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If you just get down, on April 2, President Trump reported Stunning tariffs In dozens of countries, including China, Japan and the European Union. A few days later, on the day the tariffs came into force, he paused most of the tariffs 90 days. In contrast, the Chinese import capture tariff has increased to 145%, Politico Reports. In response, China raised tariffs against US Up to 125%, bringing the US-China trade war to boiling.
Although it is not yet clear whether the Trump administration will expand the 90-day break to other announced tariffs, the big tariff for China can still have an impact on US food costs.
Here's all you need to know what is happening right now and what can happen if the extra tariffs are back in force, according to Hilbury.
Your groceries can become more expensive if Trump's tariffs are realized.
Are US -conducted tariffs causing prices for US consumers?
“Yes.” Hilbury said. “The United States receives different products from different areas of the world. The goods are sold for a certain amount and when they arrive at the port (in the United States), there is an additional compensation (or tariff) at the top of any value is at the port.”
This means that if the items are imported into the United States from China at the moment, when that item reaches the United States, there will be an additional 145% charge at the top of the original purchase price when it arrives at the port. Most of that extra price from tariffs is usually transferred to the consumer.
If the tariff was 10%, he estimated that approximately 8% of that additional price would be transferred to the consumer, which would not make too much difference from the consumer jaw, especially the lower costs, such as groceries. However, the higher the tariff, the greater the price increase.
Initially, tariffs were different. For example, the European Union – where the United States receives a lot of its wine and cheese – faces a 20% tariff with more potential horizos tariffs.
Will grocery prices increase due to tariffs?
If all the tariffs that Trump announced on April 2 came into force after a 90-day break, Americans may expect to notice an increase in grocery store and maybe a change in what is available on the shelves.
While China is not a large food importer for the United States, many of the countries that were slapped with tariffs on April 9 (before the break) are.
Read more: These fast food chains raised their prices most last year
Watch out for staggering seafood prices
Seafood is a category of food that can be significantly more expensive than tariffs.
“Things that (the United States) are not growing in volume, especially fish and shrimp, are largely coming from Asia, India, Vietnam, such places,” Hilbury said. “So, they will be up to 20 to 50% of the port and maybe a little less at the grocery store.”
Will certain products disappear all together?
Tariffs can cause problems with supply leading to empty shelves and less options for customers.
This is an opportunity if the tariffs are back in force, according to Hilbury.
“One thing that the president does not appreciate is that there are largely countries other buyers who can sell these things,” Hilbury said. “So if we decide we don't want them, they will sell them elsewhere. And it may be that the supply chain cannot justify the added costs that go with tariffs, so some things may not be there.”
Coffee and bananas are two items that could jump at a price
Most coffee beans are imported, which puts them in danger of raising the price.
While most foods will still be available, tariffs will cause price jumps and a potential lack of key imports.
“Coffee and bananas will come in, for sure, they will be more expensive,” Hilbury said. “I didn't expect these things to disappear, but I think you can expect less diversity available in the supermarket because of the tariffs. But the main effect will be on the prices.”
Many of the avocado, tomatoes and berries spent by the United States are grown in Mexico, so those products can also see increased prices related to tariffs.
What are the chances that the tariffs that take place in force?
It is not clear, but before the break, Hilbury predicted that the Trump administration would leave the tariffs because they were too sick or that congress would enter to stop the tariffs, which could happen if they return.
“I really don't think these are the constant features of the landscape,” Hilbury said. “But you know, once the tariffs are up, it takes some time to go down again. Therefore, I would think that at an angle of food, things will be more expensive, not so good, lower qualities and some goods will disappear.”