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Are Americans Ready for Impact of Trump's Tariffs?

U.S. grocery shoppers are already tired of high food prices, and things could possibly get worse
Marian Zboraj, Progressive Grocer
Grocery Inflation
Tariffs on Canada and Mexico are expected to be passed down to U.S. consumers in the form of higher prices for essential items.

President Donald Trump has officially implemented sweeping tariffs on goods imported from Canada and Mexico. The 25% tariffs on imports took effect on March 4.

The financial burdens of these tariffs are expected to be passed onto inflation-weary shoppers especially in America's grocery stores. 

According to the latest Consumer Price Index (CPI) report, grocery prices remain frustratingly elevated. Data shows that grocery inflation was up 1.9% on a year-over-year basis in January. Categories with the biggest yearly rates were meats, poultry, fish and eggs (6.1%), and nonalcoholic beverages (2.2%).  

Mintel research shows that six in 10 U.S. consumers have consistently felt affected by higher grocery prices from March 2021 to January 2025. Any additional price hikes – no matter the cause – will certainly be unwelcome. 

During Trump’s campaign for president, he promised to lower food prices “immediately” if elected. He even told the press, “I won on groceries.” 

But tariffs on the nation’s major trade partners will have a significant impact on food retail, with produce taking a noticeable hit, as the United States relies on Mexico for many fruits and vegetables, and Canada for potatoes. Grains and meat products are also top U.S. imports from Canada. 

[RELATED: Congress Urged to Tackle Issues Threatening Future of U.S. Fresh Produce]

According to the USDA, in 2023, the United States imported more than 20 million metric tons of agricultural products worth more than $40 billion from Canada. Similarly, more than 16 million metric tons of agricultural goods worth more than $45 billion came from Mexico.

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Michael Hanson, senior EVP, public affairs at the Retail Industry Leaders Association (RILA), issued the following statement in response to Trump’s tariff announcement: 

“The American people are counting on President Trump to bring down costs and grow the U.S. economy. Tariffs on Canada and Mexico put those goals in serious jeopardy and risk destabilizing the North American economy. Stacking tariffs on household goods will also raise costs on American families, millions of whom have struggled through the worst bout of inflation in 40 years."

“We urge the president and his team to reconsider compounding tariffs, including on our closest allies and trading partners, and focus on an agenda that protects family budgets and promotes growth,” added Hanson

[RELATED: Democratic Lawmakers Push Trump to Fulfill Promise to Lower Grocery Prices]

Meanwhile, National Retail Federation EVP of Government Relations David French also released a statement: “The decision to impose tariffs on our North American neighbors and two of our largest trading partners is a significant measure. Unfortunately, it is one that will only hurt hardworking Americans and the businesses that strive to provide customers with the products they want and need on a daily basis.

“Tariffs are just one tool at the administration’s disposal to achieve a secure border, and we urge it to explore other options to accomplish the same goals. As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods.

“We urge the Trump administration and our Canadian and Mexican counterparts to work together to quickly resolve our outstanding border security issues.”

Trump’s reasoning behind the tariffs was to address drug trafficking and illegal immigration, but both Canada and Mexico say that they’ve made progress on those issues.

The president also imposed an additional 10% tariff on Chinese imports, doubling the 10% duty that he placed on Beijing in early February. As reported by AP News, Beijing retaliated Tuesday with tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.

Also according to AP News, Canadian Prime Minister Justin Trudeau said that his country would slap retaliatory tariffs on more than $100 billion of American goods over the course of 21 days. Mexican President Claudia Sheinbaum said that Mexico will also respond with its own retaliatory tariffs on U.S. goods. Sheinbaum added that she will reveal the products Mexico will target on Sunday in a public event in Mexico City’s central plaza.

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