The cost of fresh produce is set to rise as new tariffs on imported fruits and vegetables begin to impact grocery stores and restaurants, pushing prices higher for consumers.
Why it matters: The United States relies heavily on imported produce, with imports totaling more than $33 billion last year. Higher tariffs could lead to a significant increase in the cost of eating healthy for American consumers.
The details:
- President Donald Trump has defended the move, saying higher tariffs will help boost domestic production and create jobs.
- Economist Alex Durante with the Tax Foundation said the United States does not have the climate or infrastructure to grow enough fruits and vegetables to meet demand.
- More than 90% of all bananas consumed in the U.S. are imported.
- Many foods from Mexico and Canada are exempt from tariffs under the U.S.–Mexico–Canada Agreement, but that only accounts for about half of imported produce.
While it is unclear how much produce prices may increase, estimates range from 4% to 7%.
“U.S. consumers really don’t have much of a choice other than to pay the higher price for that imported good,” Durante said.
For now, it will be up to shoppers to decide how much they are willing to spend.
