Banana, coffee, toilet paper prices could rise

Buyers will probably pay more for coffee, bananas, vanilla and toilet paper in the coming weeks as the new Trump administration tariffs enter into force.

The United States plans to increase rates of rates on imported goods from more than 180 countries and territories with the hope of bringing back jobs to the United States. However, some “critical” ingredients and materials found in the food, drinks and goods used daily by US consumers are not available in the country, according to the association of consumer brands, a commercial group of the industry that represents Coca-cola, Procter and bet, Aim and other consumer giants.

“As planned, the success of President América First’s commercial policy must recognize US companies that are already doing it in the right way, but they depend on imports for specific ingredients and contributions that cannot be obtained nationwide,” said Tom Motherki, vice president of resilience of the supply chain for the CBA, in a statement. “The reciprocal tariffs that do not reflect the concerns of availability of ingredients and inputs will inevitably increase costs, limit consumer access to affordable products and involuntarily damage American iconic manufacturers.”

In the “Squawk Box” of CNBC on Thursday morning, the Secretary of Commerce Howard Lutnick ruled out the idea that countries could gain exemptions for specific goods. But the CBA seeks exemptions for key ingredients and materials slapped with tariffs to keep prices for its members and their clients.

On the one hand, the American climate limits the production of some basic foods of the American diet, such as coffee, cocoa and tropical fruits, according to the CBA. The United States was the main global bananas importer in 2023, based on the data of the Observatory of Economic Complexity. Almost 40% of those bananas came from Guatemala, which will face a 10% rate on goods exported to the United States

The spices will also become more expensive for chefs and homemade bakers due to climatic limitations, the CBA said. For example, Madagascar represents more than three quarters of US imports of vanilla, which is already the second most expensive spice in the world. Madagascar exports will be subject to tariffs of 47%.

Spices Supplier Actions McCormick less than 1% fell in the negotiation of Thursday afternoon. The company plans to compensate for tariffs through “some very specific price settings” and a broader cost savings program, McCormick executives said at the end of March.

In other cases, the changes of decades in the United States agricultural system mean that domestic supply will not be able to satisfy the demand easily.

For example, more than 90% of ground food oats in the United States come from Canada to become cereals, the CBA said. But the American oat surface reached its maximum point more than a century ago and has been decreasing in the decades since then, according to The United States Agriculture Department. The domestic food system can no longer cultivate, store or transport oats at the scale necessary to meet demand, the CBA said.

Buyers are likely to be paying more for the basic foods of non -edible households. The toilet paper, the diapers, the lotions and the shampoo could become more expensive as manufacturers pass the biggest costs of the wood pulp, bamboo fibers, karité butter and palm oil, according to the CBA. For example, the United States imports most of its Indonesian palm oil supply, which now faces a 32%duty.

The markets sank Thursday in response to the announcement of rates. However, the actions in the basic consumer products sector, which includes many of the members of the CBA, increased in the afternoon trade when investors left the most risky bets for the relative security of domestic needs.

Procter & Gamble shares rose more than 1%, while Coca -Cola shares increased 2%. General Mills actions increased by 3%.