Reuters: Trump tariffs to stoke US food inflation despite pledge to lower costs
Posted: Jan 31, 2025
- US imported $195.9 billion of agricultural goods in 2023
- Major suppliers include Mexico and Canada
- 40% of fresh produce sold in the US is imported
- 2/3 of vegetable imports and 1/2 of fruit and nut imports come from Mexico
- Uncertainty over tariffs may affect meat prices, potentially raising US beef prices
- Impact on inflation and potential rate cut decisions by the Federal Reserve is uncertain
- Trump expected to announce tariffs on Canada and Mexico, causing higher costs for food imports
- Duties will raise beef prices that are already high
- About two-thirds of US vegetable imports come from Mexico, leading to potential inflation on those products
- Tariffs paid by importers, leading to either higher costs for consumers or lower profits for exporters
- U.S. cattle imports from Mexico and Canada may be disrupted by tariffs, affecting products like ground beef and steaks
- U.S. beef prices at record highs, with tariffs potentially pushing them even higher
- Uncertainty over tariffs has led to increased purchases of domestic supplies
- Inflationary impact of tariffs could be felt as food companies scramble to find alternative sources, adding to operational costs
- Nation heavily relies on imports for fresh produce, especially from Mexico and Canada
- Tariffs could lead to chaos in food markets and highlight the reliance on neighbors for feeding the population
Stay ahead of the market with AI stock alerts & AI summaries of the latest earnings, stock ideas for free with Fluid Bot. Sign up now!