The Trump administration’s U.S. import tariffs on goods from Canada, Mexico, and China are pushing up grocery prices for Korean consumers. Since the 4th, the government has imposed a 25% tariff on Canadian and Mexican imports and a 20% tariff on Chinese goods. Producers, wholesalers, and retailers will determine how much of the cost they absorb.
Produce Prices at Risk
A wholesale produce company representative said avocados, jalapeños, limes, green onions, mangoes, and tomatoes make up key Mexican imports. Stock at border warehouses could last two to three days, but price increases depend on cost distribution among suppliers.
A Korean market representative listed peeled chestnuts, steamed corn, and crabs (from Hong Kong) as key Chinese food imports. Grocery supplies remain stable due to current inventory, and frozen meat stocks could delay price hikes. However, if wholesalers pass on tariff costs, prices will rise.
Wider Economic Impact
Retailers and wholesalers expect price hikes, though the scale will vary. USA Today reported that the tariffs affect avocados, unrefined sugar, cereal, paper products, processed fruits and nuts, tropical fruits, tomatoes, onions, lettuce, cabbage, pickles, fruit juices, pasta, alcoholic beverages, meat, and seafood—all essentials for consumers.
For Canada, price increases will hit lumber, coal, aluminum, steel, rubber, flooring, and alcoholic beverages. The Anderson Economic Group estimates that if U.S. import tariffs on Mexican and Canadian goods remain, three-row full-size SUVs could cost $9,000 more, and crossover electric vehicles could see price hikes of up to $12,200.
Experts also warn about energy costs. The U.S. Energy Information Administration (EIA) reported that the U.S. imported 4.6 million barrels of Canadian crude oil per day in October last year, making up one-third of U.S. daily oil production at 13.5 million barrels.
Possible Tariff Adjustments
Amid global backlash, Commerce Secretary Howard Lutnick said on the 5th that some tariff reductions might happen. In an interview with Fox News, Lutnick referenced the United States-Mexico-Canada Agreement (USMCA), stating that President Trump may offer tariff relief if nations comply with trade regulations. Those that fail to meet requirements will continue to face U.S. import tariffs.
Related Articles:
- Trump’s new tariffs spark fears of surging costs for food, autos, and everyday goods
- Korean-American businesses brace for tariff shocks under Trump administration
BY EUNYOUNG LEE [lee.eunyoung6@koreadaily.com],
BRIAN CHOI [ichoi@koreadaily.com]
