How will the customs tariff affect grocery prices, according to the professor of agricultural economy

Trump’s commercial war It was a violent moving goal with severe global economic effects. The latest advertisement and subsequent adoption over 90 days of definitions that affect thousands of imports from dozens of countries that have been sent to Stock market But what can be comprehensive definitions on China and other countries for food Grocery prices?

Hours before the temporary suspension of the latest Trump administration’s tariff, CNET spoke to her Russell HilberryProfessor of Agricultural Economy at the University of Bordeaux, to find out how “mutual” definitions can affect the groceries’ costs for ordinary shoppers in the United States.

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If you just catch up with, on April 2, President Trump announced Comprehensive definitions On dozens of countries, including China, Japan and the European Union. A few days later, on the day when the definitions entered into force, most of the customs duties stopped for 90 days. On the contrary, the collective tariffs on Chinese imports were increased to 145 %, Politico Reports. In response, China has increased definitions against the United States To 125 %, making the trade war between the United States of China to boil.

Although it is still unclear whether the Trump administration will extend the 90 -day stoppage on the rest of the definitions that have been previously announced, the big tariff on China still has an impact on American food costs.

Here is everything you need to know about what is happening now and what can happen if the additional definitions are in effect, according to Hillberry.

Are the definitions implemented by the United States cause consumer prices in the United States?

“Yes.” Hilbery said. “The United States gets different products from different regions of the world. The goods are sold for a certain amount and when they reach the port (in the United States), there are additional (or tariff) fees in addition to any value in the port.”

This means that if the elements are imported to the United States from China at the present time, when this element reaches the United States, there will be additional fees of 145 % at the top of the original purchase price when it reaches the port. The majority of this additional cost is usually transferred from the definitions to the consumer.

If the customs tariff is 10 %, it is estimated that approximately 8 % of this additional cost to the consumer will be transferred, which will not make a big difference in the jaw of consumers, especially on low -cost elements, such as groceries. However, the more tariffs, the higher the prices.

Initially, definitions varied. For example, the European Union – where the United States faces a lot of wine and cheese – a 20 % tariff with more potential tariffs on the horizon.

Will grocery prices increase due to the definitions?

If all the definitions announced by Trump on April 2 enter into force after stopping for 90 days, Americans can expect to see an increase in the grocery store-may change what is available on the shelves.

While China is not a large importer for the United States, many countries that were slapped by tariffs on April 9 (before temporary suspension).

Read more: These fast food chains raise their prices more than last year

Watch out for the high prices of seafood

“Things that do not grow (the United States) on a large scale, especially fish and shrimp, they come largely from Asia, India and Vietnam, such as such places.” “So their number will reach 20 to 50 % in the port and perhaps a little less in the grocery store.”

Will some products disappear together?

This is a possibility if the customs tariff is in effect, according to Hillberry.

“There is something that the president does not appreciate is that the two countries have other buyers who can sell these things largely,” said Helbery. “If we decide that we do not want them, they will sell it elsewhere. The supply chain may not justify the added costs that go with the definitions, so there may not be some things.”

Coffee and bananas are two elements that can jump at the cost

Although most foods will remain available, the definitions will lead to a high price and scarcity in the main imports.

“Coffee and bananas will certainly come, they will be more expensive,” asserted. Hilbery. “I don’t expect these things to fade, but I think you can expect a lesser diversity available in the supermarket due to the definitions. But the main effect will be on prices.”

Many avocado, tomatoes and berries consumed by the United States are grown in Mexico, so these products can also see high prices related to tariffs.

What are the opportunities for the comprehensive definitions into effect?

It is not clear but temporarily before stopping, Hillberry predicted that the Trump administration would give up the definitions because it is very painful or that Congress will intervene to stop the definitions, which can occur if they come into effect.

“I don’t really think these are permanent features of landscapes,” helli said. “But, as you know, as soon as the customs tariff rises, it takes some time until they go down again. So I think it is in the angle of food, things will be more expensive, not good, and less quality, and some goods will disappear.”