Trump’s policies threaten higher food prices

During the 2024 election, candidate Donald Trump blamed President Joe Biden’s administration for high food prices and the inflation that has driven up the cost of living. Trump said he would lower the costs of everyday food items “on Day 1.”

Trump claimed his election win gave him a mandate to carry out his program. Now president again, in two weeks Trump has offered zero plans to carry out one of his most popular promises.

None of the volume of Executive Orders Trump has signed since Jan. 20 offer hope to cut weekly grocery bills for working families. These bills remain unaffordable for many people. Trump signed no order calling for a freeze on food prices or better yet, mandatory price reductions.

He has not ordered landlords to lower exorbitant rents that have pushed housing costs beyond the reach of millions of people in the U.S., nor demanded that the banks reduce excessive mortgage interest rates to put buying a home within reach for people wanting a home.

Trump has also not mandated or even suggested that the federal minimum wage — stuck at $7.25 per hour for the last 15 years — be raised closer to $21 per hour, which might bring millions out of poverty. Instead, he has unleashed attacks on organized labor, including federal civil service workers, and removed National Labor Relations Board protections for unions.

He has signed orders to unleash a new U.S. Immigration and Customs Enforcement (ICE) reign of terror. This attacks not just undocumented workers but anyone whom racist ICE agents consider a possible immigrant. It does nothing to address the deep poverty that permeates the U.S.

If the restaurants and hotels, health care providers, construction firms, agribusiness and food processing plants that depend on undocumented workers are suddenly left with an inadequate workforce, they will either cut production or raise prices to maintain profit margins.

Monopolies control over food industry

Since February 2020 — the onset of the COVID-19 pandemic in the U.S. — average grocery prices have increased by 27% — with eggs up 81%, margarine up 55%, beef and veal up 37% and juices up 32%. (CNN, Dec. 15, 2024)

Monopolization of control over the food industry has allowed major food producing and marketing companies to experience record profit margins as businesses have raised prices to take advantage of predictions of inflation. (Washington Post, Jan. 6)

The top companies that dominate food industry production include Nestlé, PepsiCo., Coca-Cola, Unilever, Tyson Foods, Kraft Heinz, Mondelez International and General Mills.

Ten major grocery chains dominate food distribution. The biggest of these are Walmart Inc. with 2024 net sales of $441.82 billion; the Kroger Co. (Ralphs, Harris Teeter, Dillon’s) with 2024 revenues of $150.4 billion; Costco Wholesale Corp., which reported 2023 revenue of $176 billion; and Albertsons Cos, Inc. (Safeway, Albertsons and Vons banners) that reported 2023 revenues of $79.24 billion.

The rest of the top ten distribution chains control combined revenues of over $226 billion. They include Ahold Delhaize USA (Food Lion, Stop & Shop, Hannaford and Giant); Publix Super Markets Inc.; H.E. Butt Grocery Co. with stores in Texas; Amazon (Whole Foods); Target; and Meijer with stores in Michigan, Ohio, Indiana, Illinois, Kentucky and Wisconsin.

If you factor in the fast-food industry, consider that just four companies control 97% of the $68 billion frozen potato market.

Trump’s tariffs will cause more inflation

Trump imposed tariffs of 10% on imported goods from China.  A threatened 25% tariff on goods from Canada and Mexico was paused on Feb. 3. These tariffs which are paid by the importer, will raise prices on everything coming from these countries to U.S. consumers as companies pass these expenses along, fueling inflation.

China and Mexico have already indicated that their responses to Trump’s tariffs would be to increase tariffs on goods they import from the U.S. The resulting trade wars will raise prices on everything imported by the U.S. — from food to cars, building materials to fuel costs — further fueling inflation.

Trump never intended to fix inflation. The billionaires surrounding Trump would have to cut into their mega profits to do that, but don’t hold your breath waiting. Washington Post columnist Catherine Rampell, Jan. 28, called Trump’s policy “an inflation bait-and-switch.”