As tariffs threaten to drive grocery prices even higher, Connecticut’s attorney general is promising to crack down on food suppliers that take advantage of the situation.
But so far, grocers said they see no evidence of wholesalers price gouging.
“IT’S DEFINITELY HIGH”
Samantha Young, of Black Rock, keeps a close eye on grocery prices.
“It’s definitely high,” she said. “But what are you going to do about it? You have to get groceries.”
And now, shoppers have to worry about President Donald Trump’s tariffs on foreign goods – which can change frequently and with little warning.
“You’ve got to look at your watch when you figure out what's happening with tariffs right now,” said Stew Leonard Jr., president and CEO of Stew Leonard’s grocery stores.
You can see it for yourself on the produce aisle. Since Chiquita Bananas are from Central America, they’re subject to new tariffs. But just feet away, mangos from Mexico are not – at least not yet.
The Budget Lab at Yale University
predicts that prices for wheat, dairy and meat products will mostly hold steady in the short-term. But rice, fruits and vegetables could jump around 7% -- and fish could be 11% more expensive.
Wine and cheese could also jump dramatically when Trump’s tariffs on the European Union begin in September – and existing supply runs out.
“All suppliers were able to plan ahead and buy ahead. So when you look at most suppliers here in the U.S., they’ve packed their warehouses with tequila, with all imported wine,” said Stew’s Wine President Blake Leonard. “But this [bottle of wine] could, come Sept., be 30% more than it is now. And it retails for about $30 on the shelf.”
SUPPLIERS TAKING ADVANTAGE?
But how much of the increase is real?
On Monday, Connecticut Attorney General William Tong pledged to aggressively investigate wholesale suppliers for any instances of price gouging.
“It’s often not the immediate retailer who’s engaging in price gouging,” he told reporters. “It’s often the wholesaler, distributor or the manufacturer.”
A
new law gives Tong the authority to investigate up the supply chain. Sen. Richard Blumenthal is seeking a similar law at the federal level.
“It would make the laws stronger, make the penalties tougher and make sure that we hold the price gougers accountable,” Blumenthal said.
But grocers said they aren’t seeing wholesale suppliers take advantage of the situation.
“I don’t anybody really ‘price gouging,’” Leonard said. “It’s sort of a dirty word in a way, when you think about it. I think, you know, there are some people trying to grab a little bit of profit.”
For now, Stew Leonard’s has not had to raise prices – because their suppliers are actually splitting the cost of the tariffs. But customers could start shouldering the cost this fall, when the U.S. growing season ends and more produce has to be imported.
“It’s a great time to be buying U.S. stuff now. California is lit up; Florida is lit up. Watermelons aren’t coming from Costa Rica anymore,” Leonard said. “When it starts getting cold again, we’ll have to go back to South America.”
Regardless of the tariffs, Young said that she still has to shop.
“We get what we have to get, and I try to go to Stew’s a lot,” she said.