I’ll be shopping for produce at Heb grocery stores in Austin, Texas on February 12th, 2025.
Brandon Bell | Getty Images
Shoppers will pay more for coffee, bananas, vanilla and toilet paper over the coming weeks once the new Trump administration’s tariffs come into effect.
The United States expects to raise tariff charges for goods imported from more than 180 countries and territories and return employment to the state. However, “important” ingredients or ingredients found in foods, drinks and products used daily by US consumers are not available domestically. coca cola, Proctor & Gamble, target Other consumer giants.
“No matter how much it is intended, the success of the President’s US First Trade Policy must recognize US companies that have already done it in the right way, but rely on imports of certain materials and inputs that cannot be sourced domestically.” “Mutual tariffs that do not reflect concerns about the availability of ingredients or inputs will inevitably raise costs, limit consumer access to affordable products, and harm unintended, iconic American manufacturers.”
On CNBC’s “Squawk Box” Thursday morning, Commerce Secretary Howard Lutnick dismissed the idea that the country could win an exemption from certain products. However, the CBA is seeking exemptions from key ingredients and ingredients slapped at tariffs to keep prices down for members and their customers.
For one, according to the CBA, the US climate limits the production of several staple foods in the US diet, including coffee, cocoa and tropical fruits. The US was the top global importer of bananas in 2023 and is based on observatory stations for economic complexity data. Almost 40% of these bananas came from Guatemala.
As you can see in this photo from 2014, Trader Joe has long boasted about not raising the price of bananas.
rj sangosti | Denver Post | Getty Images
According to the CBA, climate restrictions make spices even more expensive for home cooks and bakers. Madagascar, for example, accounts for more than three-quarters of US imports of vanilla, the world’s second most expensive spice. Exports from Madagascar are subject to a 47% tariff.
Spice Fiber Stocks McCormick It was less than 1% in Thursday afternoon trading. The company plans to offset tariffs through “very targeted price adjustments” and a broader cost-cutting program, McCormick executives said in late March.
Otherwise, decades of changes in the US agricultural system mean that domestic supply cannot easily meet demand.
For example, more than 90% of oats milled for food in the US have grown grains from Canada, the CBA said. However, according to the US Department of Agriculture, the US oat crop acreage peaked over a century ago and has since declined in decades. According to the CBA, household food systems cannot grow, store or transport oats to the scale they need to meet demand.
Shoppers will also be paying more for inedible household staples. According to the CBA, toilet paper, diapers, lotions and shampoos can become more expensive as manufacturers pass on increased costs of wood pulp, bamboo fiber, seater butter and palm oil. For example, the US imports most of its palm oil supply from Indonesia and is currently facing a 32% obligation.
The market plummeted Thursday in response to the announcement of tariffs. However, stocks in the consumer staples sector, which include many of the CBA members, rose in the afternoon trading as investors abandoned risky bets on the relative safety of household essentials.
Procter & Gamble shares rose more than 1%, while Coke shares rose 2%. General Mills shares rose 3%.
