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How Trump’s 'Liberation Day' tariffs could raise your grocery bill: THESE products will cost more
With the Trump administration implementing tariffs on imports from Canada, Mexico and China, your trips to the grocery store could come with a higher price tag.
With President Donald Trump's administration implementing significant tariffs on imports from Canada, Mexico and China, your upcoming trips to the grocery store are likely to come with a higher price tag. Trump’s plans to impose reciprocal tariffs on imports to the US will likely slow production and drive up prices. Trump has dubbed April 2 ‘Liberation Day,’ when the US president will enact a series of new reciprocal tariffs.
Some of Trump’s measures, announced earlier this year, include a 25% tariff on goods from Canada and Mexico and a 20% tariff on Chinese imports, effective March 4. The tariffs could have a significant impact on grocery prices, particularly because Mexico and Canada happen to be two of America's largest suppliers of fresh produce, meat and beverages. In fact, the US imported more than $45 billion in agricultural products from Mexico back in 2023, with almost three quarters consisting of fruits, vegetables, beer, tequila and other beverages, according to the U.S. Department of Agriculture. The US also imported about $40.5 billion in Canadian agricultural goods, including beef, pork, grains, potatoes and canola oil. Tariffs on these imports could make costs soar significantly.
What products will see an increase in prices?
While a range of US grocery products are imported from Canada, Mexico and China, fresh fruits and vegetables are particularly under threat, according to Forbes. These products could see immediate price increases as they have a short shelf life. According to the USDA, in 2022, Mexico and Canada supplied 51% and 2% of fresh fruit imports respectively, and 69% and 20% of fresh vegetable imports respectively.
The USDA states that fresh strawberries, raspberries, avocados and tomatoes are among the top agricultural exports from Mexico to the United States. On the other hand, meat and other animal products, grains and feeds and oilseeds are some of the top agricultural imports from Canada to the US.
Target CEO Brian Cornell has said customers could see an increase in prices on fruits and vegetables within a matter of just a few days, adding that “during this winter season we depend on Mexico for a significant amount of supply” and that fresh produce has “a really short supply chain.” Peterson Institute for International Economics senior economist Gary Hufbauer recently told Foreign Policy that there is likely to be an immediate increase in grocery prices from the tariffs on Mexico and Canada. Michigan State University supply chain management professor Jason Miller told The New York Times that “it’s going to be difficult to go down an aisle of a grocery store and not see some sort of inflationary effect.”
