With food prices still elevated from inflation, new tariff policies - like the recently announced 21% tariff on most Mexican tomatoes - are fueling consumer concern and uncertainty across the food and ag supply chain.
New research from Purdue's Brenna Ellison and colleagues at the University of Illinois shows that more than 77% of U.S. consumers are worried about tariffs driving food prices even higher, with many already changing how and what they buy.
These findings also align with March results from Purdue's Consumer Food Insights Report, where 84% of consumers said grocery prices in their area remain "high" and more are turning to store brands, cutting back on nonessentials and even producing food at home. To view that report click here.
The research found that most consumers across political lines are worried about grocery bills. Those concerned about tariffs are also more pessimistic about short-term inflation, with the data showing sharp partisan shifts in inflation expectations.
EDITOR’S TAKE:
Most of us do not fully understand or appreciate the significance of what is occurring with trade policy and tariffs. Although it has been clear that tariffs would play a central role in resetting the global trade platform, few could truly relate to the upheaval that would ultimately follow the announcements of reciprocal tariffs. It is unfortunate that the nation just finished four years of historical inflation under the Biden administration which left grocery prices very high. Now, with the uncertainty brought about vis a vis tariffs, of course many consumers are concerned. If successful in resetting global trade to a fairer position for the U.S., we will look back on this brief blip in history as a necessary part of the new order. In the meantime, higher food prices have consumers changing their purchasing decisions and will continue to impact their psyche. Farmers are also concerned about tariffs and food prices, waiting and hoping for that clarity and favorable resolution that will set everyone’s mind at ease.
As a CAD member you may not be able to do a lot to lower food prices, but you can lower the cost of purchasing a new truck for farmers/ranchers. How? AgPack® of course. Currently, AgPack® partners are offering over $45,000 in exclusive rebates and discounts. That can certainly take away some of the sting from all the uncertainty.
