The wholesale price of vegetables in the US has surged by nearly 40%, or 38%, in July, according to government data. The sharp increase has raised concerns about potential price hikes for consumers, particularly if tariffs imposed by President Donald Trump’s administration are passed on to shoppers.
Experts say the causes of the spike are unclear and could be related to factors such as adverse weather conditions, supply chain disruptions, or tariff-induced cost increases. While some analysts point to tariffs as a possible cause, others argue that the connection is not as straightforward.
The US imports over a third of its fresh vegetables, making it vulnerable to price fluctuations caused by tariffs. However, importers often offset the tax burden by raising prices for consumers. So far, tariff-induced price increases have been marginal.
Some analysts believe that labor costs may be rising due to immigration policies, which could contribute to higher vegetable prices. The Trump administration’s restrictive immigration policy has led to increased detention of undocumented immigrants at work sites and revocation of Temporary Protected Status for hundreds of thousands of immigrants.
Despite the concerns, consumer prices remain unchanged from June to July, with a 0.2% increase over the past year. Experts warn that if the current price surge continues, shoppers may face higher prices in the coming months.
One food economist predicts that consumer price hikes could exceed 10% under such a scenario. While some analysts link tariffs to rising vegetable prices, others argue that the connection is not as clear-cut. The Trump administration has been critical of inflation concerns linked to tariffs, stating that they have brought in significant revenue for the country’s treasury.
Source: https://abcnews.go.com/Business/tariffs-blame-40-spike-wholesale-vegetable-prices-experts/story?id=124684249