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Tariffs Could Make Groceries Pricier—Here’s One Smart Way Around It
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Key Takeaways
- U.S. tariffs may cause increased food prices at the grocery store.
- CSAs may be a more reliable and affordable source of produce during economic instability.
- Joining a CSA can help your family eat more produce while supporting your local economy.
Whether you’re paying attention to the news or not, higher-than-normal grocery bills have likely made you aware of recent changes in the economy. The status of tariffs is frequently evolving, making it confusing to understand how these policies might affect your wallet. Community-supported agriculture (CSA) is a subscription service to a local farm. Besides supporting your local community, these boxes are a dependable way to receive fresh produce regularly—they may even save you money, depending on where you live and how tariffs continue to affect food costs. Here, we explain why now is the time to sign up for a CSA.
What Are Tariffs?
Simply, tariffs are taxes charged on goods imported from other countries—and some or all of the additional costs are borne by consumers. For example, if a U.S. company imports a $10 product from another country on which the U.S. has imposed 125% tariffs, they pay a $12.50 tax on top, making the total cost of the item $22.50. And the U.S. shopper who buys this item at the store will see that increased cost reflected in the price tag.
So, when our country imposes tariffs, we have to pay more for goods made outside the United States. We are also seeing what’s called “retaliatory tariffs” or “reciprocal tariffs,” which is when the U.S. imposes a tariff on goods from a particular country, and they impose a tariff right back. When retaliatory tariffs are imposed, it’s not uncommon to see U.S. companies increase prices on domestically produced goods to safeguard against future losses or to compensate for less supply and demand—further driving up the cost of goods.
Regardless of who imposes the tariff and whether there’s retaliation, the key take-home message is that tariffs have major effects on the economy, including how much we pay for food.
What Are the Recent Tariffs Imposed on Agricultural Goods?
Countries that export agricultural goods to the United States may be subject to U.S.-imposed tariffs of varying percentages. Some countries have percentages over 100%, while others have none. These tariffs have ripple effects, as anything produced in a country with tariffs imposed by the United States will cost more for us to import.
Tariffs recently went into effect for Mexico, from where many U.S. grocery stores get their fruits and vegetables. They’ve also been placed on China, which has made farming equipment more expensive. The status of tariffs imposed by the U.S. government continues to change, and the best way to fully understand how and which agricultural goods are affected is by reading recent news reports.
How Can Tariffs Affect Prices and Availability?
As a result of tariffs, farms may pass their increased expenses onto their consumers, making U.S.-grown agricultural goods cost more for Americans despite being grown in our own country. As for goods grown or produced internationally, these items may become more expensive or harder to find.
The unfortunate larger picture is that U.S. farms may fail due to the economic fallout of these changes. For example, China is the largest international buyer of U.S. soybeans, and soybean farmers in the United States are concerned that if their soybean exports decrease significantly, the financial impact could be devastating.
What Are the Benefits of Signing Up for a CSA?
Aaron Nichols of Stoneboat Farm, a CSA in Hillsboro, Oregon, says the reasons to join a CSA are always the same, regardless of current economic trends: health, quality and community.
It May Have Benefits for Your Health
Nichols says that local farmers are very careful with their soil. He explains that they pay close attention to “carefully balance the nutrients, which makes the vegetables healthier, which makes them healthier for you.”
Besides the produce being potentially more nutrient-rich, Nichols points out that CSA boxes can help the whole family increase their fruit and vegetable intake. For kids specifically, he says that being involved in the process of picking up the box and sifting through its contents can make kids more excited to eat the produce than if you’d just brought it home from the grocery store.
The Food May Taste Better
Taste is another key consideration—after all, if a food tastes good, you’re more likely to eat it. When you eat produce from a CSA box, you’re eating it shortly after it’s harvested, which is when the flavors—and nutrients—are at their highest. In contrast, most grocery store produce has spent days, if not weeks, being transported and stored before it arrives on your plate. “Two-week-old lettuce does not have the quality for your health or taste buds that fresh lettuce does,” says Nichols.
It Supports Your Community
Nichols says that when you have a CSA, “You’re part of a local system and community that is a little bit more resilient compared to international supply chains. We take care of each other.” He adds, “Supporting local farms keeps the infrastructure right here where we need it.” In addition to supporting local farmers, produce from a CSA has fewer miles to travel before it reaches your kitchen, making it a win for the environment.
How Does the Cost of a CSA Compare to Buying Imported Produce under Tariffs?
It’s hard to know the exact price difference between locally grown and international produce because the tariffs are in flux. Tariffs on Canada, Mexico and China could have a major effect on food prices. However, it’s too soon to say exactly how your grocery bill will be affected.
“Vegetable quality and price varies greatly [regardless of tariffs],” says Nichols. However, he adds, “The best value for quality of price to cost is a CSA model because consumers are sharing the risk with us, so we’re giving them a better price.”
According to Nichols, organic produce from the supermarket is almost always going to be more expensive than your local CSA, whereas conventional produce will likely be cheaper at the grocery store because labor costs are lower in many other countries. As for farmers’ markets, while the food is more local, the price varies greatly depending on the vendor.
When determining the best value for your buck, it’s important to factor in the overall quality of the produce. Because it hasn’t traveled as far and may be grown in more nutrient-rich soil, Nichols says that produce from a CSA offers a better overall deal for your wallet and health.
The Bottom Line
We don’t yet know the full effect of tariffs on agricultural goods. However, taking part in your local CSA can have numerous benefits. Besides being potentially more reliable—and affordable—during this time of economic uncertainty, produce from local farms may be more flavorful and encourage your family to eat more fruits and vegetables. Plus, opting into a CSA is an excellent way to support your local community and the environment.