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Tariffs, Imports, and the Ongoing Impact

A worried and frazzled looking young woman pointing to text that reads "How tariffs could affect your budget and what to do about it!"

How tariffs could affect your bottom line as of January 27, 2025

Here is my take on Tariffs Imports and the Ongoing Impact of Trump-Era Policies. In recent months, the economic landscape has been shaped by a mix of ongoing tariff battles, shifting trade policies, and new developments surrounding imported goods. From coffee to household goods like clothing and toys, U.S. consumers are feeling the pressure.

Meanwhile, the White House has reached agreements, such as with Colombia, to pause certain measures, but the ripple effects are still being felt. Below, we dive into the key updates and explore how they could impact everything from grocery prices to everyday essentials in the months ahead.

Update on Coffee, Imported Goods, and Tariffs (January 27, 2025):

Recent developments in U.S. trade policies have highlighted potential price increases on imported goods, but there’s good news regarding Colombia.

Tariff Update:

  • Colombian Imports: Initially, emergency tariffs of 25% (set to rise to 50%) were announced for Colombian imports, including coffee. However, as of January 26, 2025, the U.S. and Colombian governments reached an agreement on deportation flights, leading to a pause in these measures. This could mean Colombian coffee prices may not see the dramatic hike previously expected.
  • Canada and Mexico: The potential for 25% tariffs on goods from Canada and Mexico remains on the table for February 1, 2025, so consumers should monitor for updates.
  • Reuters  Investopedia

Impact on Goods:

  • Coffee: With the Colombian tariffs paused, Colombian coffee prices might remain stable for now. However, global supply chain challenges and rising demand could still cause gradual increases.
  • Food, Clothing, and Toys: Imports from Canada and Mexico, including fresh produce, apparel, and toys, could still be impacted by the proposed tariffs if they take effect.

Consumer Tips:

  • Stay Flexible: Pay attention to news on tariff negotiations, especially for goods from Canada and Mexico.
  • Plan Ahead: Stock up on nonperishable staples and consider domestic alternatives to mitigate potential price hikes.
  • Shop Local: Support local businesses and farmers to reduce dependency on imported goods.

The situation remains fluid, so staying informed is your best tool for navigating these shifts in the market.

Gloved hands sorting coffee beans on a table of a factory.

COFFEE

Here’s a breakdown of where your morning cup of Joe comes from.

Brazil is by far the largest coffee producer globally. Here’s a breakdown of where coffee beans come from, along with approximate percentages:

  1. Brazil – Around 35-40% of U.S. coffee imports come from Brazil. As the world’s largest coffee producer, Brazil is a key supplier for the U.S.
  2. Vietnam – Roughly 20-25% of U.S. coffee imports come from Vietnam, which primarily exports Robusta beans (used in instant coffee and espresso blends).
  3. Colombia – Colombia is another major player, accounting for around 10-15% of U.S. coffee imports. Known for its high-quality Arabica beans, Colombia is one of the most recognizable coffee origins.
  4. Honduras – About 8-10% of U.S. coffee imports come from Honduras, which has grown in importance over recent years as a top Arabica producer.
  5. Mexico – Around 5-7% of U.S. coffee imports come from Mexico, especially in the form of organic coffee beans.
  6. Other countries – Several other countries, including Guatemala, Peru, and Ethiopia, contribute smaller percentages. The U.S. imports from dozens of countries worldwide, though no other country comes close to the contributions of Brazil, Vietnam, and Colombia.

So, while Brazil is the dominant supplier, other regions are also crucial in ensuring a steady coffee supply to the U.S.

A female farmer holding out a large carton of multi-colored farm fresh chicken eggs.

EGGS

The recent surge in avian influenza (H5N1) has led to the culling of millions of laying hens, resulting in significant egg shortages and soaring prices across the United States. As of January 2025, the average cost of a dozen eggs has risen to $4.15, up from $1.48 in 2021.

The Times

In response to the outbreak, the Centers for Disease Control and Prevention (CDC) has issued interim guidance to reduce exposure to avian influenza A viruses, particularly for those working with animals.

cdc.gov

However, recent policy changes have temporarily required federal health agencies, including the CDC, to obtain White House approval before releasing public communications. This directive, effective until February 1, aims to allow new appointees to review regulations, guidance documents, press releases, and other public information. Critics argue that this review process could delay the dissemination of vital health information.

Time

Potential Outcomes and Preparation Strategies:

  • Continued Egg Shortages and High Prices: The culling of infected flocks may lead to prolonged egg shortages and elevated prices.
  • Supply Chain Disruptions: The poultry industry’s challenges could affect related sectors, potentially leading to broader food supply issues.

Preparation Tips:

  1. Explore Egg Alternatives: Consider using egg substitutes in cooking and baking, such as applesauce, mashed bananas, or commercial egg replacers.
  2. Adjust Meal Planning: Plan meals that require fewer eggs or are egg-free to reduce dependence on this scarce resource.
  3. Stay Informed: Keep abreast of updates from reputable sources like the CDC and local health departments to make informed decisions.
  4. Support Local Farmers: If available, purchase eggs from local farms not affected by the outbreak, as they may have more stable supplies.

By staying informed and flexible in our meal planning, we can navigate these challenges together.

A farmer in a grove of orange trees wearing a hat to protect from the sun holds a crate of oranges and gives a thumbs up sign with a smile.

ORANGES

As of January 27, 2025, Florida’s orange industry is facing significant challenges due to recent freezing temperatures and ongoing labor shortages.

Impact of Freezing Temperatures:

In late January, Florida experienced below-freezing temperatures and historic snowfall, particularly affecting the cold-hardy citrus regions of South Georgia, South Alabama, and North Florida. Growers are currently assessing the damage to their groves, with concerns about potential phytophthora infections, which can further harm citrus trees.

Citrus Industry Magazine

Labor Shortages:

The citrus industry has been grappling with labor shortages for years, exacerbated by factors such as immigration policies and the COVID-19 pandemic. These shortages have led to difficulties in harvesting and maintaining groves, contributing to the industry’s decline.

Politico

Industry Outlook:

The combination of climate challenges, including the recent freeze, and labor shortages has resulted in a 92% reduction in Florida’s orange production since the 2003–04 season. This decline has been attributed to natural disasters, diseases, and labor issues.

FreshPlaza

In response to these challenges, researchers are exploring innovative solutions, such as genetically modified trees and plant growth regulators, to enhance citrus resilience. However, these approaches are still in the early stages and may take years to implement effectively.

Agriculture News | AgricultureDive

For consumers, these developments may lead to higher prices and reduced availability of Florida oranges and related products. Staying informed about these issues can help in making more sustainable and cost-effective choices.

My advice?

With egg prices soaring due to the ongoing shortage, it’s a good idea to stockpile a few dozen eggs.

Don’t worry, they freeze well!

To freeze eggs, simply crack them into a bowl, beat them lightly to combine the yolks and whites, and pour the mixture into ice cube trays or small containers. Once frozen, transfer the egg portions into a freezer bag or airtight container for easy use. Each cube is about one egg, so it’s perfect for cooking or baking when you need it!

While you’re figuring out a local source for fresh eggs—like from a nearby farmer or a friend with chickens—consider grabbing some frozen orange juice, too, as citrus prices could rise due to weather-related damage to crops and no one to pick them.

And don’t forget about coffee!

The U.S. imports nearly all of its coffee beans, so it’s smart to stock up now in case of disruptions. With other food costs also creeping up, it’s always a good idea to keep an eye on pantry staples and prepare for potential price hikes ahead.

Being proactive can help you weather these rising costs without feeling the pinch.

Yoy will also enjoy – How Tariffs Impact Your Grocery Budget and Shrinking Cake Mixes and the Sweet Solution


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