In the current economic landscape, many consumers are beginning to feel the impact of recent tariffs on various shelf-stable groceries and beverages. While fresh fruits and vegetables at U.S. supermarkets primarily come from Mexico and Canada—countries not affected by the latest tariff measures—items such as sugar, coffee, rice, prepared soups, and nuts are expected to see significant price increases.
For instance, approximately 95 percent of the olive oil consumed in the United States is imported, with a large portion sourced from Italy, Spain, Tunisia, and Turkey. However, the steepest price hikes are anticipated for Americans’ beloved morning coffee, which is predominantly imported from overseas. Graffeo, a renowned coffee roastery based in San Francisco and established in 1935, relies on daily deliveries of green coffee beans from Colombia, Costa Rica, and Papua New Guinea—regions that are now facing a 10 percent tariff. According to owner Walter Haas, “Once tariffs hit, we’ll feel it immediately—literally the next day.” Haas has already raised coffee prices by 8 percent this year to mitigate rising operational costs, emphasizing that if tariffs persist, these price increases will be permanently integrated into what consumers pay.
Similarly, Dina DiCenso, co-owner of Rind, a vegan cheese company, has expressed concerns regarding the price of cashews imported from India and Brazil. Her supplier has warned of potential price increases of up to 25 percent, a daunting challenge for DiCenso, who orders tens of thousands of pounds of cashews annually. “I don’t know how much higher we can raise prices, but we won’t be open long if we have to cover the cost of these tariffs,” she remarked. Even products made with domestically sourced ingredients are facing hurdles, as vegetable farmers struggle to find labor amid stringent immigration policies. DiCenso’s latest shipment has also been delayed indefinitely, demonstrating that challenges in the food industry are multifaceted. “Whether it’s international or domestic, the food industry is facing a lot of challenges,” she added.
The clothing and shoe industries are not exempt from the ramifications of these new tariffs. Analysts indicate that the shoe and apparel sectors have been blindsided by steep tariffs of 46 percent on goods imported from Vietnam and 37 percent on imports from Bangladesh. Major retailers, including Nike, have previously shifted production away from China to these countries to avoid tariffs. Now, fast-fashion retailers such as H&M and Gap, along with major retailers like Amazon, Target, and Walmart, will see significant impacts on their pricing strategies.
Additionally, the Trump administration has closed a loophole that previously allowed Chinese companies like Shein and Temu to avoid tariffs on packages valued under $800. Under the new regulations, these shipments will now incur tariffs of either 30 percent of their value or a flat $25 per item, further straining retailers. These additional tariffs come on top of already high taxes on imported apparel, especially women’s clothing. Notably, last year, nearly 97 percent of clothing sold in the U.S. was sourced from abroad. Steve Lamar, president of the American Apparel & Footwear Association, stated, “To be clear, tariffs are taxes borne by the American companies that import the goods and the hardworking American families that buy those goods.” He pointed out that the average tariff on clothing, shoes, and accessories is already more than five times higher than on other imports.
The economic implications of these tariffs extend beyond the grocery and apparel sectors. In April, President Trump announced a 10 percent tariff on all imports, in addition to targeted punitive import taxes affecting around 60 countries. This trade war is causing significant disruptions in financial markets and unsettling business owners across the globe. The ongoing adjustments to tariffs and their far-reaching effects on consumers and businesses alike underscore the complexities of the current economic environment.
As these tariffs take effect, consumers can expect to see changes in their shopping habits and spending as businesses navigate these new economic realities. Whether it’s the rising cost of coffee or increased prices for clothing and shoes, the impact of tariffs will undoubtedly shape purchasing decisions moving forward.
