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Consumers concerned about tariff impacts on food prices

A University of Illinois study shows most consumers expect tariffs to increase the prices they pay for food.

 Researcher and assistant professor Maria Kalaitzandonakes says, “People that are worried about tariffs are also much more worried about short-term inflation.”

Kalaitzandonakes tells Brownfield when it comes to the economy, there are two things consumers pay close attention to. “Food prices and also gas prices play a really important role in consumers expectations about the economy, and sort of, their perceptions overall. Are they doing well? Are they not doing well? Those two expenditures play really big roles in their feelings about the economy overall.”

Kalaitzandonakes says the most recent survey was conducted in February before the tariffs were put in place, but consumers were already taking action. “The main action that people said they were doing was that they were pulling back on spending, so reducing spending because of the uncertainty, because, you know, they think, oh, if prices go up, I don’t want spend money on things that are non-essential.”

Kalaitzandonakes says the Gardner Food and Agricultural Policy Survey found most people expect food price increases, but their political beliefs also affected their expectations, with 74.6% of Republicans and Independents and 85.4% of Democrats saying tariffs will increase their food costs. “There’s actually a really long history of research on this dating back to the Reagan administration that sort of, when your favored presidential administration is out of office, you’re more pessimestic about the economy and about inflation, and when your prefered candidate is in office, you’re more optimistic. We are definitely picking up on that in our results.

Kalaitzandonakes says 34.2% of those surveyed were stockpiling larger amounts of goods, with 83.7% of those goods being food and beverages.

AUDIO: Maria Kalaitzandonakes with the University of Illinois discusses consumer perceptions about tariffs and food prices with Brownfield’s Larry Lee.