Nearly 75% of U.S. food imports in 2024 hit by Trump tariffs

A study released on Monday (28) by the Tax Foundation reveals that in 2024, the United States imported approximately US$221 billion in food products, 74% of which (US$163 billion) are subject to tariffs imposed by President Donald Trump.

The Tax Foundation, a nonprofit organization that has been analyzing tax systems and compiling data on global taxation for over 80 years, explained that under current conditions, these imports face tariffs ranging from 10% to 30%.

However, it noted that rates could exceed 30% for some countries if reciprocal tariffs go into effect on August 1st — as is the case with Brazil, which Trump has threatened with a 50% surcharge.

“The five largest exporters of food products to the U.S., in order, are Mexico, Canada, the EU [European Union], Brazil, and China, accounting for 62% of total U.S. food imports,” the foundation stated.

Impact on U.S. inflation

According to the Tax Foundation, U.S. import tariffs are set to rise for over 80 countries on August 1st. The conclusion is that Trump’s tariff hike will impact nearly 75% of U.S. food imports.

“With around 71% of U.S. product imports already facing President Trump’s minimum 10% tariff, much attention has focused on how these tariffs will impact the manufactured goods sector. However, many food imports are also affected, likely resulting in higher prices for consumers,” the study says.

The report, authored by senior economist Alex Durante and Rebecca Walker, explains that higher food import tariffs are likely to drive U.S. inflation because domestic production is insufficient to meet demand. They cite the example of banana imports.

“In 2023, the U.S. imported over US$2 billion in bananas, mostly from Guatemala and other Central American countries. The U.S. has limited banana production capacity, with few locations offering the right climate. Since land is a scarce resource, banana growers in Florida and Hawaii could not easily expand production to meet American demand. The result is that a banana import tariff would simply make U.S. consumers pay higher prices for imported bananas,” the analysts argued.

In the case of Brazilian coffee, which could be subject to a 50% surcharge starting this Friday, the study highlights flavor as a key appeal.

“Given that Brazilian coffee may have a unique flavor profile, U.S. producers cannot simply replicate ‘Brazilian coffee’ domestically. In this situation, some consumers may simply choose to pay the higher import price for Brazilian coffee rather than switch to another type,” the study says.

According to official data, tariffs announced by Donald Trump in the first half of the year have already had an inflationary impact. Items such as clothing, home appliances, and furniture became more expensive, driven by the president’s tariff hikes. In June, consumer prices rose by an average of 0.3% and 2.7% over the 12 months.

Source: G1

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