Affordability is a hot topic for politicians everywhere. Food, in particular, has become a key focus. From New York Mayor Zohran Mamdani to former President Donald Trump, many leaders claim they want to make food cheaper. However, their policies often push grocery prices higher instead.
Earlier this year, the U.S. Supreme Court overturned some tariffs from the Trump era, but the tariffs on steel and aluminum remain. These tariffs, still at a hefty 50%, have a direct impact on food prices. They drive up costs for canned goods made with tinplate steel, affecting everything from soups to fruits and vegetables. According to the Consumer Brands Association, these tariffs could raise canned food prices by as much as 15%.
Del Monte Foods recently announced it would close a plant in Modesto, California, shedding around 1,500 jobs. While tariffs weren’t the sole reason for this decision, they played a significant role.
Interestingly, the Biden administration has not shied away from similar practices. They also aimed to increase tariffs on tinplate steel but were rejected by the International Trade Commission. Although these policies can seem isolated to one party, both sides have contributed to rising food prices.
State and local policies can also have unintended consequences. In New York City, fines for food delivery apps rose significantly when the minimum wage for delivery workers was increased to $22.13 per hour. In early 2024, delivery fees for consumers surged by 58% compared to the previous year. Companies like Instacart introduced extra fees to offset these costs.
The Renewable Fuel Standard (RFS), which requires biofuels to be blended into gasoline, is another example showing bipartisan agreement on creating higher food prices. This regulation increases the demand for corn and soybeans, ultimately pushing food costs higher. The International Council on Clean Transportation estimates that this standard has raised corn prices by 12%.
According to the U.S. Department of Agriculture, food prices are forecasted to rise by 3.6% in 2026, exceeding historical growth rates.
Despite the constant chatter about affordability, effective solutions are scarce. Politicians may talk tough about high food prices, but real relief seems far from reach.
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steel tariffs, tinplate steel, Zohran Mamdani, President Donald Trump pledging, the Trump administration, food delivery, Consumer Brands Association
