From CNBC: 2025-04-03 18:09:00

The Trump administration’s new tariffs will lead to higher prices for coffee, bananas, vanilla, and toilet paper. The U.S. plans to increase tariff rates on goods imported from over 180 countries to boost domestic job growth. However, some essential ingredients and materials are not available domestically, impacting consumer goods. The Consumer Brands Association is seeking exemptions to keep prices down.

Commerce Secretary Howard Lutnick dismissed the idea of countries receiving exemptions from tariffs. The CBA is advocating for exemptions for key ingredients like coffee, cocoa, and tropical fruits, which the U.S. cannot produce in large quantities. Bananas from Guatemala, a top U.S. importer, will face a 10% tariff, affecting consumer prices.

Climate limitations will make spices like vanilla more expensive. Madagascar supplies over 75% of U.S. vanilla imports and faces a 47% tariff. Companies like McCormick plan to offset tariffs with price adjustments and cost-saving measures. Shifts in the U.S. agricultural system mean domestic supply cannot meet demands for staples like oats.

Household staples like toilet paper, diapers, and shampoo may increase in price due to tariffs on wood pulp, bamboo fibers, and palm oil. The U.S. imports most of its palm oil from Indonesia, now facing a 32% duty. Markets reacted negatively to the tariff announcement, but consumer staples sector stocks rose as investors sought safety.

Stocks of companies like Procter & Gamble, Coca-Cola, and General Mills rose in afternoon trading amidst the tariff announcement. The Consumer Brands Association continues to advocate for exemptions to keep prices down for consumers.



Read more at CNBC: Banana, coffee, toilet paper prices could rise