Kevin Hannigan, owner of the Produce Exchange at Midtown Global Market, says coffee prices are going up.
“A year ago, it cost us maybe $4.54, and now it costs $7.00,” he notes. “Frozen food, fresh food, coffee, you name it, it’s going up.”
That’s not all.
Hannigan says fresh fruit, meat and even ginger from China are more expensive.
He says initially, he thought the U.S. Supreme Court decision, striking down some of the Trump tariffs, might be a relief.
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“Per ounce, it could be dimes and quarters, I don’t know, maybe a dollar here or there in some,” Hannigan explains. “Once prices go up, and people are used to it, the decline might be just a little bit. Could go down 5% to 10%.”
But now, shoppers say there’s more uncertainty, with a new 10% tariff proposed by President Trump on Friday.
A study by the Tax Foundation says the Trump tariffs amount to an average tax increase of $1,000 per average household.
“Seems like we’re getting nickel-and-dimed into paying more all the time,” says Andrew Fahlstrom, from Minneapolis. “My family buys less. The people around me are more stretched. We don’t go out to eat as much.”
A new poll shows a majority of Americans disapprove of how Trump is handling the tariffs.
But what about a timeline?
With the high court ruling, could prices fall, and if so, when?
“Some of these could happen relatively quickly,” says Tyler Schipper, an associate professor of Economics at the University of St. Thomas. “A lot of this is going to depend on how quickly the government actually stops changing these tariffs when things are imported.”
And the impact on Minnesota families?
“Unfortunately, it’s going to be a little bit limited,” Schipper explains. “Those wholesale prices are much cheaper than what you’re actually seeing in the grocery store, and so, I think people should understand that the price drops at the grocery store, we’re talking nickels and dimes, not dollars, for instance.”
Some economic experts believe people will cut back even more if the 10% tariff becomes permanent.
Brenda Blakey says amid the tariff whiplash, she hopes some consumer prices will fall.
“I’m changing my habits and buying less, a lot less,” she notes. “I don’t know if it’s going to come about, but I hope it does.”
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