In the first months of President Donald Trump’s second term, he established the goal of returning the U.S. to a manufacturing economy by imposing heavy tariffs, which forced stores to increase their prices and customers to spend more money on the same items.
A tariff is a tax imposed on imported goods. This tax, which is first applied to the company, will usually be passed to the consumer, who buys the final product, according to the BBC. Tariffs are responsible for many things, but currently, they are being used as a negotiation tool and a way to rewire the U.S. economy, according to ETF Strategist Channel.
“There are broad impacts, even beyond just the economy, as far as the reputation of the U.S. on the world stage and people’s willingness to be able to work with us, whether it’s through national security or economic partnerships in the future. I can’t point to anything else that is more to blame for our current economic crisis than tariffs,” said Greer Stone, an economics teacher at Carlmont High School.
According to the U.S. Bank, the U.S. currently has an economy centered on consumerism, where a majority of the population thrives from purchasing goods and services. Everything from an Uber ride to buying an apple contributes to this culture. However, with the implementation of tariffs, this economic structure will become more challenging to maintain.
“In the long run, we’ll see people disengaging from the economy and not spending as much. The American economy, in particular, is founded on consumerism, not manufacturing,” Stone said.
At the end of the day, Trump’s goal is to reduce consumer spending and increase domestic manufacturing, according to the White House. However, by raising tariffs on foreign countries, his implementations will do more than reinstating a manufacturing economy.
Reducing consumerism is just one of the many side effects of the tariffs Trump has imposed. His aggressive actions and use of this tax as a negotiation tool have not only triggered a trade war, according to the Associated Press but have also impacted the diversity of food found in supermarkets, according to the University of California, Davis (UC Davis).
“We get so much of our produce from Mexico. The other day, I was buying avocados, and I noticed they were all from California. They were maybe a little cheaper, but terrible quality. We are going to see lower options, lower quality, and higher prices at the grocery stores,” Stone said.
Switching vendors from international to national is another result of the tariffs imposed by the Trump administration. Having domestic vendors may reduce the cost of the item. However, this reduction may come at the expense of lower quality.
“I’m sure a little bit of everything from outside the U.S. will be affected. A lot of the produce is pulled from different parts of the world, so things like tomatoes and avocados will probably be affected a lot,” said Bryce Wong, the floor manager at Lunardi’s Markets.
As for Lunardi’s Markets, changing vendors is a possibility, according to Wong. Nevertheless, they want to ensure that their customers will still receive the same quality they are known for. By choosing vendors not just on price but also on the caliber of their items, Lundari’s Markets can do just that.
“We’ll definitely look for vendors that have quality items. We won’t just grab any vendor that’s cheap and provides produce that isn’t great. There will still be a quality that we will look for,” Wong said.
For many shoppers, the quality of their produce, although significant, is just one of their many concerns. Another worry for customers is the price of items, and with the implementation of tariffs, some may forgo buying extra items to be able to afford the price increase.
“I’ll buy the necessities that I need, but I will refrain from buying extra goods. I’ll also definitely be more cautious about what I buy because I don’t want to spend any extra money. Depending on how extreme these tariffs are, I need to be careful about my spending,” said Iris Campbell, a junior at Carlmont High School.
The long-term result of these tariffs is unknown, as the U.S. is still in the first phase of implementing them. However, according to UC Davis, it will not be the stores that are hit the hardest but rather the customers.
“At the end of the day, it’s not these stores that are going to be impacted because people are going to be buying less, but the people who are really going to be impacted by these higher costs. It’s going to be us and not necessarily Safeway,” Stone said.
