Supermarket
With the new american bill, prices of common foods from the supermarket are going up Money Wellness

American supermarket shoppers could soon be paying significantly more for everyday essentials after Donald Trump's latest tariff bill introduced a 25% import tax on products from Mexico and Canada. The move is set to impact 77% of fresh produce, which comes from Mexico, and the vast majority of meat, imported from Canada, causing a substantial price surge across US grocery stores, according to Quartz.

Major Supermarkets Brace for Price Hikes

Retail giants including Walmart, Target, and H-E-B are already preparing for the financial fallout. Target CEO Brian Cornwell acknowledged the inevitable price increases, particularly for items heavily reliant on Mexican imports. Speaking to CNBC, he explained: 'Those are categories where we'll try to protect pricing, but the consumer will likely see price increases over the next couple of days.'

Similarly, Walmart's CEO Doug McMillon reassured customers that while the retailer has navigated tariffs before, price hikes may be unavoidable: 'We're wired to try and save people money. So that will be our ultimate goal.'

The Essential Items That Will Cost More

With the tariffs in place, these key food items imported from Mexico and Canada are expected to see sharp price increases, according to Delish:

  • Avocados
  • Strawberries
  • Peppers
  • Nuts
  • Beer
  • Cooking oil
  • Seafood
  • Maple syrup
  • Butter
  • Beef

A Sudden Change of Heart?

Despite the widespread concern, Trump unexpectedly announced on 7 March that he was pausing the 25% tariffs on Mexico and Canada. This temporary halt means that free trade between the three countries will continue until 2 April, at which point reciprocal tariffs on all nations will be enforced, according to Yahoo News.

Initially, the US had planned to impose:

  • 25% tariffs on imports from Mexico and Canada
  • 20% tariffs on imports from China (which remain in place despite the pause on North American tariffs)

Why Did Trump Pause the Tariffs?

According to reports, Trump's decision was influenced by Mexican President Claudia Sheinbaum's commitment to addressing drug and weapons smuggling across the US-Mexico border. The two leaders have reportedly engaged in several discussions, with Sheinbaum pledging closer cooperation.

Speaking about the new timeline, Sheinbaum stated: 'On 2 April, everybody is going to be under the same circumstances. In Mexico, we don't have tariffs against the US—this should be reciprocal, and we should not receive tariffs.'

Meanwhile, Canadian Prime Minister Justin Trudeau had previously warned that Canada would impose a matching 25% tariff on US imports. With Trump now shifting towards a universal tariff approach, Canada's response remains uncertain.

What Happens Next?

While the temporary suspension of tariffs means that food prices won't rise immediately, the situation remains fluid. On 2 April, the final tariffs will be announced, and if Trump reinstates the 25% tax, the cost of essential goods could spike almost overnight.

For now, US consumers can expect relative stability at the supermarket, but the uncertainty surrounding trade negotiations suggests potential price hikes in the coming weeks. With reciprocal tariffs looming, all eyes are now on the White House's next move and how it will reshape the US economy and global trade relations.