Trump's New Grocery Tariff Plan Has Everyone Pointing Out The Same Unfortunately Obvious Thing

"It's no secret that grocery prices have been creeping up again, and tariffs on common imported items like coffee, tea, and produce contribute to rising costs. "We just did a little bit of a rollback on some foods like coffee," Trump said a few hours after the announcement. He admitted that the tariffs have "in some cases" raised consumer prices, but he maintained that "to a large extent they've been borne by other countries.""

"Back in April (which feels like a hundred years ago), I spoke with Bankrate Senior Economic Analyst Mark Hamrick to learn what to expect from tariffs. He cautioned that prices tend to shoot up like they're on an elevator, but when or if they start to come back down, they move more slowly like they're taking the stairs. He said, "There's more elasticity with prices going up than there tends to be both in speed and magnitude going down. We see that all the time, whether it's gasoline prices or other things.""

"While some items like bananas could see prices tumble back down without the tariffs, it may not work across the board. Experts have warned that for some items like coffee, global shortages and supply chain issues mean that easing tariffs now may have little effect on the prices we pay at the grocery store. So as much as it would make my day, my week, my month, etc., to pay less for groceries, I'm not holding my breath."

Tariffs on commonly imported foods such as coffee, tea, and produce have contributed to rising grocery prices. A partial rollback on some food tariffs, including coffee, was announced, with claims that much of the tariff burden has been borne by foreign countries. A Bankrate analyst warned that price increases tend to happen quickly while decreases occur more slowly, reflecting asymmetrical elasticity. Some items like bananas might see meaningful price drops if tariffs are eased, but goods such as coffee face global shortages and supply-chain constraints that can limit price relief. Overall, easing tariffs may not promptly translate into lower grocery bills.

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