Acosta report highlights effect of tariffs on grocery shoppers, retailers

The U.S. tariffs imposed on China have already cost the average American household $600 per year.

That’s according to a new report from Acosta, which reveals how tariffs influenced grocery item prices since late summer 2019 and shares the perspectives of consumers, manufacturers and retailers.

"U.S. tariffs imposed on China have cost the average American household $600 per year, and that impact is expected to rise to $1,000 per year if the late 2019 tariffs take effect," said Colin Stewart, executive VP, business intelligence at Acosta. "It's a difficult situation for manufacturers and retailers as well. Manufacturers are at the mercy of government decisions, and it is creating friction between manufacturers and retailers as to who will bear the costs of price increases."

Acosta's The Impact of U.S. Tariffs on the Grocery Industry report found that shoppers are already paying more for various grocery items, including 6% more on pork, 5% more on yogurt and writing tools/supplies and 4% more on fruit. It also found that most shoppers are worried about price increases — only 11% reported not being concerned about tariffs making products more expensive.

In other findings: 

• Seven in 10 shoppers believe tariffs have increased prices on everyday grocery products.

• The impact on manufacturers is highly dependent on the product line, sourcing and manufacturing location. CPG companies with U.S. based manufacturing are gaining an advantage.

• Providing adequate notice to retailers for price increases can be a struggle due to being at the mercy of government decisions, which often occur with limited or no notice. 

• The level of willingness to accept price increases varies by retailer. Many expect manufacturers to bear the cost. 

• Most retailers compare potential price increases to their commodity costs on their private label items.