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Another day, another potential tariff change. The latest from the White House: to address Americans’ rising grocery bills, President Trump wants to carve out tariff exemptions. There aren’t many details yet, but officials have noted that exemptions might include foods like coffee and bananas from four countries: Ecuador, Argentina, El Salvador and Guatemala. Will these meaningfully lower costs for American consumers? Noah Namowicz, COO of Cafe Imports in Minneapolis, has a lot of tariffs to keep tabs on.
“Each country has its own unique rate,” Namowicz said. From Indonesia to Ethiopia to Peru, the company imports from something like 30 different countries, including some on the exemption list.
“Open our computers every day and just figure out how we bring nice coffees to market,” Namowicz said. He said any tariff relief helps. But it’s likely not going to have a huge impact on prices. The U.S. imports about a third of its beans from Brazil, a country not on the exemption list. The tax rate for imports from Brazil is 50%. Meanwhile, coffee costs have been rising because of extreme weather.
“So yeah, there’d need to be a couple other things that would probably have to happen for the coffee market to actually come down,” Namowicz said. Ricky Volpe, a professor of agribusiness at Cal Poly San Luis Obispo, said a tariff exemption is welcome news because it could help slow inflation. But, he said, “It’s not likely to bring food prices down.”
There are so many other factors that influence the price of food, like cost of labor, transportation and warehousing. Plus, there are other tariffs. |