American consumers, on average, spend over $900 every month on groceries according to a survey by digital marketing company, Popmenu. With food prices soaring in the aftermath of the pandemic and the consumer price index rising by 0.3% in June alone, household budgets are under increasing strain. The high cost of groceries hits lower- to middle-income households particularly hard. In response to the escalating costs, many consumers have started reducing their grocery spend, opting instead for discounted items and generic brands, as reported by Bank of America. However, impending tariffs imposed by President Donald Trump on U.S. trading partners, specifically Mexico, the European Union, and Canada, could further exacerbate the situation. These tariffs, reaching up to 35%, will likely drive up the cost of imported food, potentially leading to even higher grocery prices. These three trading partners account for nearly 60% of all agricultural imports into the U.S., according to the Department of Agriculture. As a result of these challenges, American consumers may need to find further ways to economize their purchases in the coming months.
Spiraling Grocery Prices: How American Households are Coping
As grocery prices surge, American consumers seek savings by cutting back, switching to discounted items and generic brands. Tariffs on U.S. trading partners could further inflate prices.
