CONSUMERS are likely to soon see higher prices at the grocery store on a handful of essential items.
As the new administration’s tariffs on foreign imports threaten to increase food costs, an expert shared three simple tips to save money at checkout.
Experts and retailers have warned that the new tariffs on Mexican and Canadian imports could mean that some of your favorite staples will become more costly.
Trump has moved forward with his plan to impose a 25% tariff on our neighboring countries, scheduled to collect levies from Mexico and Canada starting at 12:01 am Tuesday, according to a draft public notice of the rules from Monday.
While the taxes are intended to boost domestic production, they will likely raise the cost of everyday essentials for American consumers.
1. Strawberries
The US receives a significant portion of its strawberries from Mexico, which is one of the largest producers of the fruit in the world.
Mexico supplied roughly 85% of strawberries imported to the US in 2022, per the USDA.
The new 25% levies mean that import costs have increased, and the price of strawberries at the grocery store will likely go up too.
Restaurants may also pass on the extra costs to diners by hiking their prices on fruit bowls, desserts, and other dishes containing the fruit.
2. Avocados
While the cost of avocados is already relatively high, it may see an even greater rise under the new tariffs.
For example, a large avocado costing $2.99 could increase to around $3.75.
Mexico supplies around 90% of the avocados consumed by Americans, and the 25% tariffs on the country’s imports are threatening chains such as Chipotle that rely on the product.
Chipotle sources roughly 2% of its ingredients from Mexico, including the avocados used to make its staple guacamole.
3. Tomatoes
The US imported $3.2 billion worth of fresh tomatoes in 2023, of which 86.1% was from Mexico, per the USDA.
The 25% tariffs will likely result in a price hike of the kitchen essential, but fresh tomatoes aren’t the only grocery item that could take a hit.
Consumers may also see a price increase on tomato-based products such as salsa, pasta sauce, and ketchup.
Mexican and Italian restaurants will likely face rising costs as well, potentially increasing dining prices for those who enjoy a good pizza or a chips-and-salsa night.
Rising Grocery Costs
The cost of many grocery essentials could increase under the new 25% tariffs on imports from Canada and Mexico. Here are a few examples:
Fresh produce: strawberries, avocados, tomatoes, bell peppers, cucumbers, lettuce, berries Beer Tequila Meat: beef, chicken, pork Grain products: cereal, bread, pasta, oatmeal Maple syrup EggsSource: Eat This, Not That
4. Alcohol
Alcoholic beverages including beer and tequila could become more costly under the new tariffs.
Popular beers such as Corona and Modelo are imported from Mexico and are subject to the 25% tariff, meaning that liquor stores, bars, and restaurants will likely pass on their extra costs to consumers.
Domestic beer brands may also experience price shifts as they adjust to market changes.
In addition to beer, tequila fans could see a hike in the cost of tequila bottles and cocktails containing the liquor, such as margaritas and tequila sunrises.
A significant portion of the tequila consumed around the world is imported from Mexico, with the US standing as the primary importer.
5. Meat
The cost of beef has already been on the rise due to the drought, high grain prices, and spiking interest rates that have raised the costs of cattle farming.
The new tariffs could increase the cost of beef even further, as Canada is one of the top suppliers of beef to the US.
If our neighboring countries respond to the 25% tariffs with retaliatory tariffs, other meats such as pork and chicken may also cost consumers more.
STRETCH YOUR MONEY
Although Americans’ grocery bills are likely to increase following the new 25% tariffs, shoppers can save a few dollars at the grocery store with a few key strategies.
Dominick Miserandino, a retail expert and board member of Engage3, a price image management company for retailers, shared three tips to save money on your next grocery run.
1. Stick to the Essentials
The best way that consumers can save money on groceries is to create a shopping list and stick to it, according to Miserandino.
The retail expert suggested that shoppers focus on essential groceries.
“The key is to avoid getting distracted by impulse buys that can quickly add up,” he said.
To maximize their savings, shoppers can also take advantage of digital coupons and store apps.
2. Buy in Bulk When it Makes Sense
Warehouse clubs such as Costco and Sam’s Club are a great option for saving money, as the chains offer bulk options that can save you money in the long run.
Those without a membership, however, can still save money in the face of price increases.
Stocking up on non-perishables when they are on sale at traditional grocery stores is a smart move, according to Miserandino.
“Pasta, canned goods, and other staples can last a while, and buying in bulk can save you money long-term, especially as prices climb,” said the retail expert.
3. Don’t Overlook Store Brands
A third way that consumers can stretch their dollars at the grocery store, according to Miserandino, is to consider purchasing store brands over name brands.
“Store brand items are often just as good as the name brand options,” he said.
The retail expert advised shoppers to compare the ingredients between the products, noting that they are often the same.
“Switching to store brands is an easy way to lower your grocery bill without compromising on quality,” said Miserandino.
While there are ways to manage your grocery spending, several retailers have shared their concerns about potential price spikes due to the new tariffs on foreign goods.
For example, the Target CEO shared a ten-word message to shoppers as warning about prices, sparking concerns over grocery options.
The Walmart CEO also signaled fear over price hikes in “uncertain times” after Trump’s tariff plans on China, Mexico, and Canada.
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