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




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