Impact of Trump's 2025 Tariff Policy on U.S. Supermarkets: Costco's Five Major Imported Food Prices Face Pressure

In April 2025, President Trump of the United States announced the imposition of a minimum tariff of at least 10% on all imported goods, and punitive tariffs of up to 145% on products from specific countries, leading to global trade upheaval. This policy is intended to revitalize American manufacturing but has triggered price fluctuations in the U.S. retail market. Five key categories of imported foods at Costco—grains, coffee, wine, cheese, and cooking oil—have been severely impacted, resulting in price increases. This article examines the specific effects on these products and the market's reaction.

Grains: From Thai Jasmine Rice to Pasta, Imported Staples Take the Hit

Among the grain products sold by Costco, Kirkland Signature Thai Jasmine Rice and Garofalo Organic Pasta imported from Italy are directly impacted by tariffs. According to reports, Thai Jasmine Rice faces a 36% tariff, with each bag expected to increase in price by $6 to $7 (approximately NT$192 to NT$224). Although the specific increase for pasta has not been announced, price adjustments are also expected in the coming months.

The U.S. grain market has long relied on imports from countries like Mexico, Canada, and Australia. The Trump administration's broad tariff policy puts similar pressure on these trade partners, raising the cost of imported staples, which naturally leads to higher retail prices.

Coffee: Global Supply Chain Disruptions Push Colombian Dark Roast Coffee Prices Up

Coffee, an important item in American household consumption, is also affected by tariffs. Brazil, Vietnam, and Colombia together supply 62% of the world's coffee beans, currently facing U.S. import tariffs ranging from 10% to 46%. As a result, Costco's Kirkland Signature Dark Roast Colombian Coffee has become a key example of rising prices.

Since coffee beans are a major agricultural commodity, price fluctuations are particularly sensitive to consumers. Many households have started buying in advance to stock up in anticipation of possible future price changes.

Wine and Cheese: European Gourmet Foods Become Tariff Focus

EU products are subject to a 20% import tax under the current tariff policy, directly affecting several popular wines and cheeses sold by Costco. These include wine brands like Kirkland Signature Champagne and Valminor Albariño Rias Baixas, as well as various hard cheeses, which are popular with consumers because they can be stored for a long time.

Wine and cheese mostly come from European countries like France, Italy, and Spain, whose trade relations with the U.S. are under strain under the Trump administration's "reciprocal tariffs" policy. Retailers like Costco need to reassess their procurement strategies and pricing structures to cope with rising costs.

Edible Oils: Rising Import Costs for Olive and Avocado Oils

Among edible oil products, avocado oil imported from Mexico and New Zealand is subject to 25% and 10% tariffs, respectively, while olive oil from Italy, Spain, and Greece faces a 10% tariff. As a result, Italian-made extra virgin olive oil sold by Costco has caught the attention of consumers.

Although domestically produced Kirkland Signature California Extra Virgin Olive Oil is not affected by tariffs, the supply chain may experience bottlenecks due to overall market fluctuations. Experts point out that the rising prices of imported oils may further drive up the overall market price of edible oils.

Policy Background and Market Reaction: From Trade War to Consumer Pressure

On April 2, 2025, Trump announced a 10% baseline tariff on all imported goods, with reciprocal tariffs of up to 49% on countries with trade deficits. Tariffs on China are even higher, reaching 145%, leading to retaliatory actions by China, including tariffs of up to 125% on U.S. goods and restrictions on key raw material exports.

Although Trump claims this move will "usher in a golden age for America," creating jobs and increasing revenue, market reactions show high levels of unease. U.S. stock, bond, and dollar markets have all declined, and consumer confidence indices have also dropped. According to a report by the Yale Budget Lab, these tariffs will increase annual food expenses for American households by nearly $5,000, with food prices expected to rise by 2.6% in the short term, and fresh produce prices increasing by more than 5%.

Retail Pressure and Political Controversy: "Truth in Tariffs Act" on the Horizon

Facing consumer pressure and the reality of rising prices, U.S. Democratic lawmakers have proposed the "Truth in Tariffs Act," requiring retailers to clearly indicate the extra costs caused by tariffs on product labels or receipts. The bill has not yet been submitted to Congress but has already sparked widespread discussion.

Democratic Senator Chuck Schumer criticized Trump's tariff policy as "eroding the hard-earned income of Americans," while the White House countered, accusing Democrats of ignoring inflation issues during the Biden administration. This political clash over tariffs and inflation is gradually transforming into real pressure in consumers' daily lives.

References

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