INDIANA – Indiana residents are facing mounting pressure on their grocery budgets as food prices continue to rise, with experts advising consumers to stock up now before further increases take effect. The anticipated price hikes are attributed to ongoing supply chain disruptions, increased demand, and new U.S. tariffs on imports from China, Mexico, and Canada.
A Yale Budget Lab report suggests these tariffs could raise grocery prices by over 5%, potentially costing Indiana households thousands of dollars annually. The U.S. Department of Agriculture (USDA) anticipates the most significant price increases in fruits, vegetables, dairy products, and sugar-related items.
To mitigate the impact, consumers are advised to consider stocking up on certain items that are expected to experience significant price increases due to tariffs on imported ingredients or raw materials. These include:
- Coffee: Brazil and Colombia, key coffee producers, face 10% tariffs, with prices expected to continue rising.
- Canned Goods: Tariffs on aluminum and steel are set to increase the cost of various canned foods, including beer, refried beans, chili peppers, pasta, legumes, pineapple, meats, nuts, tomatoes, soup, olives, and tuna.
- Sugar: Imported primarily from Mexico and Brazil, pure cane sugar is subject to a 10% tariff.
- Seafood: With 85% of U.S. seafood imported, frozen options are recommended for stocking up.
- Alcoholic Beverages: European wines, Mexican beer, and Russian vodka are expected to become more expensive.
- Extra Virgin Olive Oil: Olive oil from Italy and Spain faces a 10% tariff, potentially rising to 20%.
- Vanilla: Madagascar vanilla currently has a 10% tariff, with potential reciprocal tariffs of 47%.
- Nuts, including cashews, pecans, and macadamia nuts, primarily sourced from Vietnam, Côte d’Ivoire, and Brazil, are subject to steep tariffs.
- Jasmine Rice: Imported from Thailand, Cambodia, and Vietnam, jasmine rice faces existing tariffs of 10% and potential reciprocal tariffs of up to 49%.
- Chocolate Chips: Cacao beans from the Ivory Coast and Ecuador are now subject to 10% tariffs.
- Maple Syrup: Primarily sourced from Canada, maple syrup is subject to a 25% tariff.
The consensus is that anything packaged in a can is likely to see a price increase due to the 25% tariff on aluminum and steel imports.
