Tariffs Set to Drive Up Grocery Prices: What U.S. Shoppers Need to Know

Hadisur Rahman, Jadetimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: John G Mabanglo/EPA, via Shutterstock

The impact of the Trump administration’s sweeping new tariffs is expected to hit grocery shoppers hard and soon. As early as the end of April, American consumers may begin noticing price hikes, particularly in fast moving grocery items such as fresh produce, seafood, coffee, and sugar. So, what exactly is going to change? Let’s break it down.

What Are These New Tariffs and Who Is Affected?

Starting this Saturday, imports from countries like Guatemala and Peru key exporters of bananas and grapes will face a 10% tariff. A second round of reciprocal tariffs, impacting 57 countries, will roll out by the following Wednesday. This includes significantly higher levies on seafood imports like shrimp from Vietnam (46% tariff) and India (26% tariff), which make up a major portion of the U.S. seafood market.

Food analysts warn that these tariff rates could shake up pricing across the board, especially in aisles where goods sell quickly and inventory turnover is high.

Produce and Seafood: First in Line for Increases

If you regularly reach for bananas or grapes, expect a slight bump in prices. However, the seafood counter may see sharper increases. Shrimp, one of the most commonly consumed seafoods in the U.S., will become significantly more expensive due to the steep tariffs on key suppliers.

“These aren’t luxury products they’re everyday purchases for many American households,” noted Keith Daniels, managing partner at Carl Marks Advisors.

Coffee and Sugar: Staple Items Under Pressure

Coffee, already priced at historic highs due to supply chain challenges and global demand, may see an additional 10% to 35% cost increase, especially for specialty beans. Sugar another kitchen staple will likely follow a similar trend.

Since many of these products are sourced or processed overseas, determining the exact price increase is complex. “Because ingredients and packaging often come from multiple countries, it’s hard to pin down exact impacts right now,” Daniels added.

Private Labels and Budget Options No Longer a Safe Haven

In response to recent inflation, many grocery stores expanded their private label product lines as budget friendly alternatives. But tariffs are expected to eat into those savings as well.

“It was a bit of a refuge for consumers,” Daniels said. “Now that’s not going to be there.”

Small Businesses Hit Hardest

While major players like Mondelez and Kraft Heinz have the resources to weather the storm, smaller companies are scrambling to stay afloat. Companies like Paleovalley, which relies on imported monkfruit purée, and Burlap & Barrel, which imports spices from 30 countries, are already scaling back production and delaying product launches.

Lisa Cheng Smith, CEO of Yun Hai, a specialty food importer based in New York City, is facing a 32% tariff on imports from Taiwan. She emphasized the need for creative cost cutting strategies rather than immediate price hikes. “We’re not going to panic and just raise our prices right away,” she said.

Are Price Gouging and Confusion Inevitable?

Errol Schweizer, publisher of The Checkout Grocery Update, warned that the uncertainty may open the door for price manipulation. “Consumers won’t know if things are priced correctly or if they’re getting ripped off,” he said.

Retailers like Walmart require advance notice and thorough documentation for price increases, which adds to the administrative burden businesses now face.

What Can Grocery Shoppers Do Right Now?

Industry experts suggest that it might be a smart move to stock up on non perishable staples such as canned soups, dry pasta, and coffee before the full impact of the tariffs hits shelves.

“It’s harder to stockpile avocados than cans of soup,” quipped Sam Silverstein of Grocery Dive. “Which is another reason to grab something on the shelf if it’s offered at a good price.”