Di Yi Cai Jing·2025-08-25 22:22Core Viewpoint - The U.S. food industry is seeking exemptions from tariffs that have reached the highest levels in decades, impacting prices and supply chains [2][3]. Group 1: Tariff Impact on Food Industry - Approximately 20% of food consumed in the U.S. is imported, with significant reliance on imports for various products, including cucumbers and seafood [3][4]. - The average effective tariff rate on imported goods faced by U.S. consumers is 18.6%, the highest since 1933, potentially increasing average household spending by $2,400 by 2025 [3]. - The U.S. seafood trade deficit was $24 billion in 2022, with 90% of shrimp supply being imported, primarily from India [5][6]. Group 2: Industry Responses and Concerns - Food industry associations are warning that tariffs could lead to significant price increases, particularly for products like cucumbers, which have seen import levels rise from 35% in 1990 to nearly 90% [4]. - Major retailers like Walmart and Target have reported rising costs due to tariffs, with Walmart's same-store inflation rate increasing by 1.1% year-over-year as of early August [10]. - Target's sales have slowed, and the company is negotiating with suppliers to avoid passing on tariff-related price increases to consumers [11]. Group 3: Economic Projections - Economists predict that overall U.S. inflation could rise from 2.5% in the second quarter to around 3.5% by the end of the year, influenced by tariff impacts on retail prices [13].