From garlic to coffee: Trump's new tariff will shake the US food prices

A major new tariff policy announced by the White House on April 2 could soon make everyday items like coffee, chocolate, olive oil, and cheese much more expensive for American consumers. The move is part of President Donald Trump’s push to protect domestic production.




What’s changing: The tariffs explained


The most striking change is a new universal minimum tariff of 10% on all imported goods, including food and agricultural products, taking effect April 5. These universal tariffs apply across the board, from raw food ingredients to finished products like chocolate, cheese, and coffee. On top of that, Trump’s administration revealed a list of " retaliatory tariffs " against more than 50 countries, with extra taxes ranging from 10% up to 49% on specific imports.


What it means for food prices


This tariff surge is likely to raise the prices of many food items that rely on foreign ingredients or are entirely imported — such as bananas, coffee, chocolate, cheese, and cooking oil.


Leslie Sarasin, President & CEO, FMI said, “We are concerned that today’s tariff announcement could bring rising prices, a squeeze on household budgets and reduced competitiveness for American companies relative to international competitors.” She also added, “The uncertainty and inflationary pressures created by reciprocal tariffs are a major worry for American consumers and our food industry member companies that operate on slim 1.6% retail and 7.5% food manufacturing net margins.”


Who’s affected — and who’s not

While many countries were hit with steep import taxes, Canada and Mexico — the U.S.'s top two trading partners — were excluded from this latest round. However, a 25% tariff announced in February is still in place, although many food and agriculture products are exempt under the US-Mexico-Canada Agreement (USMCA).

Coffee


The United States grows almost no coffee domestically. Outside of small farms in Hawaii, virtually all coffee consumed in the U.S. is imported, making it especially vulnerable to tariff hikes. Yet despite this dependency, coffee is not exempt from the new levies — even from trade partners like Mexico and Canada, who were otherwise spared broader food tariffs under the USMCA. Both of these now face a 25% tariff under earlier policies from February, which remain in place.

Globally, the new tariffs target the top five coffee-producing nations, including Brazil (10%), Vietnam (46%), Colombia (10%), Indonesia (32%), and Ethiopia (10%). These countries account for the lion’s share of global coffee exports. Vietnam, a major source for mass-market coffee blends, is hit particularly hard, with nearly half the product’s value added in tariffs. As a result, everything from grocery store coffee to café brews could soon carry a higher price tag — a ripple effect likely to be felt by consumers and businesses alike.

Chocolate


Not just coffee, but chocolate too, took a hard hit as both raw cocoa and finished chocolate products now face steep import costs. Ivory Coast, the world's leading cocoa producer, has been hit with a 21% tariff, while Ghana and Indonesia, the second and third top producers, face 10% and 32% respectively.

On top of that, finished chocolate products coming from some of the world’s most renowned producers also see major tariff hikes: Swiss chocolate faces a hefty 31% duty, European Union-made chocolate is now taxed at 20%, and chocolate from the United Kingdom carries a 10% surcharge.

Garlic and Apple Juice

China, the U.S.'s third-largest trading partner, was hit particularly hard. A new 34% tariff will be layered on top of existing import charges, bringing the total tariff burden on Chinese goods to over 50% in some cases. This has major implications for items people often don’t think of as foreign.


For instance, China supplies over 80% of the world’s garlic. Most of the garlic in American kitchens comes from there. The country is also the largest producer and exporter of concentrated apple juice, and accounts for about two-thirds of the apple juice consumed in the U.S.

Even common ingredients like spices, shrimp, tea, and fish will become more expensive. In 2023 alone, the U.S. imported $1.3 billion worth of fish, $850 million in vegetable and animal oils, and another $1.3 billion in vegetables, fruits, and nuts from China. With the new tariffs, importing these essentials could become financially unworkable for many American distributors.

Cheese, Olive Oil, Wine — It’s All Getting Pricier

Imports of high-end goods like European olive oil, wine, beer, and specialty cheeses are now facing heavier costs. EU nations, the largest exporters of these goods to the U.S., are likely to see their exports shrink, and Americans may feel it on their grocery bills.


Packaging Materials and Essential Ingredients

Even food packaging isn't spared. A new 25% tariff on aluminum cans is expected to raise costs for many processed and canned food items, though it won’t stack with other levies.

Interestingly, one of the few non-food categories facing hefty new tariffs is pharmaceutical imports — particularly from the EU. Imports of semaglutide, the active ingredient in weight-loss drugs like Ozempic and Wegovy, are now subject to a 20% tariff or more.

Will countries retaliate?

The Trump administration’s decision is not going to be without consequences, and other nations might respond by imposing new taxes. US farmers are already feeling pressure. Soybean prices dropped after the announcement. The U.S. exported over $24 billion in soybeans in 2024, with China and the EU accounting for more than 60% of that total. If retaliation happens, demand could shift to Brazil, the top global supplier.