Raging shoppers reach for Kraft after major policy change tacks on $2,400 a year to grocery bills

A MAJOR policy shift is expected to raise Americans’ grocery bills by thousands of dollars.

Some staple items like cheese will be subject to the increases, causing uproar among consumers.

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Cheese costs may be going up soon as the result of new policies (stock image)[/caption]

Concerns of economic uncertainty have been ongoing for major retailers and businesses since President Donald Trump’s first introduction of global reciprocal tariffs in April.

After some pauses and adjustments that followed, the full gambit of the “doomsday” taxation is here as of August 1.

Rates like 50% on Brazil and India, 30% on China and Mexico, and 15% on all goods from the European Union are on the list.

Economists have warned that costs would be passed onto consumers at some point, and while much of that remains to be seen, some spikes are already here, according to what Kyle Peacock, founder of Peacock Tariff Consulting, told Daily Mail recently.

“We have started to see certain products suffer,” Peacock explained.

“Coffee prices have already jumped, so have vegetables.”

Imported cheeses could be next, as the United States brings in a fair amount from EU countries like France, Italy, and Spain.

America’s cheese imports were the highest ever last year at over 473 million pounds, per Cheese Reporter.

As a result, most consumers will be forced to opt for American cheese brands like Kraft Heinz and Sargento for what they need.

Arie Brish, a business professor at St. Edward’s University, told the publication that there would be a clear and “stronger preference to buy US-made products if the imports become more expensive.”

START BUDGETING

In general, costs for food-at-home have been steadily increasing since May 2024, according to the Food Price Outlook from the USDA.

With tariffs in full swing, estimates are showing about a yearly bump of $2,400 per household, per the Yale Budget Lab.

Peacock said weekly increases would be around $40 on average within the next three to six months.

While there are many product areas that will see spikes, coffee and matcha are set to be drastically affected.

Considering matcha, most of the supply in the US is imported from Japan, which now has a tariff of 15%.

Many smaller coffee/matcha shops are stocking up to hold off price increases for the time being.

“We’re looking at how much stock we have in our warehouse and then how much we’re going through per month and doing the math and trying to push the suppliers to finalize the order as quickly as possible,” David Cooper, owner of Spot of Tea, told The Hill.

Cooper sources matcha powder from South Korea, and argued that it’s “hard to tell at this point what percentage tariff is actually going to be applied.”

COFFEE CHAOS

The 50% tariff on Brazil is brutal for coffee, as the country produces a whopping 40% of the entire world’s supply.

Other top coffee exporters include Colombia, Vietnam, Indonesia, and Ethiopia, per data from the USDA Foreign Agricultural Service.

Domestic coffee production in the United States is also extremely limited, per the Financial Times.

Hawaii remains the most prominent source for coffee and cocoa beans.

Still, it can’t possibly keep up with the demand, as noted by Kona Haque, research head at commodity trader ED&F Man.

Haque explained that the US is the “ultimate nation of coffee drinkers” and “simply cannot produce these products.”

Even morning runs to Starbucks and Dunkin’ will likely be more expensive on the daily.

Chocolate, fruits, olive oil, certain spices, and wines and spirits are also expected to face hikes in the coming months.

Packages are also set to increase in price as part of an August 29 law.

Ford has also admitted that cars coming to the United States will be more expensive for the rest of 2025 amid an $800 million hit.