Yahoo Lifestyle Which Foods You Might Want to Stock up on Now Before Tariffs Go Into Effect, According to Experts
With new tariffs being imposed across the U.S. starting as soon as March 4, grocery prices could soon be on the rise—especially for imported foods. While the full impact remains to be seen, experts say it's a good time to plan ahead and stock up on certain pantry staples. To better understand what these tariffs mean for your bottom line, we asked the experts for their take on what tariffs are, why they matter, and what steps we can take to prepare at the grocery store.
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What Are Tariffs?
Sharon McMahon, New York Times bestselling author of The Small and the Mighty and founder of the daily newsletter ThePreamble.com says that tariffs are quite simple: "Think of a tariff like a tax on a company," she says. "In the same way you might go to the mall and buy a sweater and pay sales tax on it, when a company imports goods from overseas, they are paying a tax on that good." McMahon says it is a misconception that foreign countries pay the taxes; rather, it is the importing company that pays them. "If a retailer wants to make toasters in China and there is a tariff on goods made in China, it’s not China that pays the tariff, it is the retailer who is buying the toasters," she says.
What Countries Will the Proposed Tariffs Affect?
The new tariffs are proposed to affect Canada, Mexico and China. There was a 30-day pause on the tariffs that were enacted on Canada and Mexico, meaning both countries were able to work out deals to temporarily hold off on the implementation of the 25% tariffs, but the most recent reports indicate that they'll go into effect on March 4.
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How Would the Proposed Tariffs Work?
Right now, there is a 10% tariff in effect on China. McMahon says this will add 10% to the cost of most goods that companies buy from China. They pay this tax to the United States government (McMahon says many goods that come from China already had tariffs placed on them from previous administrations so this is an additional 10% tariff on top of what was already in place). China, in turn, has said they will tariff a number of things they get from the United States.
What Are the Foods That Will Be Affected by the Tariffs?
McMahon notes that the United States imports a large percentage of its fruits and vegetables from Mexico, including bell peppers, cucumbers, tomatoes, avocados, raspberries and strawberries. "Beer is also considered an agricultural product," she says, "so if the tariffs go into effect, you could see higher beer prices on popular brews like Corona."
While we rely on Mexico for fresh produce, many of our agricultural imports from Canada involve baked goods, canola oil, beef, pork, and frozen foods like french fries. So expect the prices in those categories to rise as the tariffs are enacted.
What Can We Do to Prepare for These Tariffs?
Shop smarter. Now is the time to get back into coupon clipping. Scour those Sunday ads and pay attention to the apps and sales flyers at your local stores for deals.
Stock up on frozen goods. McMahon says to stock up if you see something on sale when it comes to frozen fruits and vegetables. "[Those] may already be in warehouses and stores and therefore not subject to new tariffs," she says.
Be mentally (and financially) prepared. Major retailers are already cautioning people that as much as they want to keep prices down, if the 25% tariffs go into effect, they will not be able to absorb that cost. McMahon says consumers should expect to see higher prices at the grocery store.
Shop around. If you only shop at one or two stores, branch out and explore the deals in some new territory. Aldi and Trader Joe's, for example, are known for their quality and lower prices over your typical grocery store.
Go local. Shopping at your local farm stands and markets could be the key to not only saving some money when these tariffs go into effect, but you're helping a local business as well. Win-Win!
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