President Donald Trump’s sweeping new tariffs are poised to create significant ripple effects across the U.S. economy, particularly for low-income households that depend on the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps.
With imported goods like coffee, chocolate, and fresh produce facing steep price hikes, economists and advocates warn that these tariffs could erode the purchasing power of millions of Americans who rely on SNAP benefits to meet their basic nutritional needs.
The Importance of SNAP in the U.S.
SNAP is a lifeline for over 40 million Americans, including children, seniors, and individuals with disabilities. The program provides monthly benefits to help low-income households purchase essential groceries.
However, these benefits are calculated annually and may not keep pace with sudden spikes in food prices caused by external factors like tariffs. As a result, beneficiaries may find it increasingly difficult to afford nutritious food if prices rise sharply.
How Tariffs Could Drive Up Food Prices
The newly announced tariffs include a universal 10% tax on all imported goods, with additional country-specific levies ranging from 20% to 50%. Many of the items subject to these tariffs are staples in American households and heavily influence SNAP spending patterns.
For example:
- Coffee and Chocolate: The U.S. imports 80% of its coffee beans from countries like Brazil and Colombia, which now face a 10% tariff. Cocoa beans from Côte d’Ivoire and Ecuador are also subject to similar levies, driving up the cost of chocolate products.
- Fruits and Vegetables: Mexico supplies over half of the U.S.’s imported fruit and nearly 70% of its vegetables. These imports are now subject to a 25% tariff, which could significantly increase the cost of items like avocados, tomatoes, strawberries, and peppers.
- Soft Drinks: A 25% tariff on imported aluminum is expected to raise production costs for canned beverages like soda, which SNAP recipients frequently purchase.
- Seafood: With 80% of seafood consumed in the U.S. being imported, tariffs on fish, shrimp, and scallops from Asian nations could lead to substantial price increases.
These rising costs will likely be passed on to consumers as importers adjust their pricing strategies. For SNAP recipients operating on tight budgets, even modest price increases can have outsized impacts.
The Impact on SNAP Beneficiaries
According to USDA data, approximately 40% of SNAP benefits are spent on essential items like bread, milk, eggs, fresh produce, and meat. Another 20% is allocated toward processed snacks and beverages. Many of these products are directly or indirectly affected by international supply chains now subject to higher tariffs.
While SNAP benefits are adjusted annually for inflation (on October 1 each year), they do not account for real-time price fluctuations caused by sudden economic changes like tariffs.
This delay means that beneficiaries may face months of reduced purchasing power before adjustments catch up with market realities.
For example:
- A family relying on SNAP may find it harder to afford fresh fruits and vegetables due to increased costs from Mexico.
- Processed foods made with imported ingredients like cocoa or aluminum-packaged beverages could become prohibitively expensive.
- Families may be forced to switch to lower-quality alternatives or reduce their overall food intake, leading to potential nutritional deficiencies.
Broader Economic Implications
The effects of these tariffs extend beyond individual households. Grocery retailers in low-income areas may see reduced sales as SNAP recipients cut back on purchases. Food banks and community organizations are also likely to face increased demand as more families struggle to make ends meet.
Experts have expressed concerns about the long-term consequences of these policies:
- Alex Beene, a financial literacy instructor, noted that “rising prices from tariffs could diminish purchasing power for SNAP recipients while they wait months for benefit adjustments.”
- Kevin Thompson, CEO of 9i Capital Group, emphasized that “inflation hits immediately, but assistance doesn’t arrive until much later.”
- David Warrick from Overhaul highlighted that “even slight price increases can force families into making difficult trade-offs between quantity and quality.”
What Lies Ahead
If these tariffs remain in place through the end of 2025, food prices are expected to continue climbing. This could exacerbate food insecurity among vulnerable populations already struggling with inflation and stagnant wages.
Anti-hunger organizations are urging policymakers to consider targeted exemptions for essential food items or increase funding for SNAP to mitigate the impact.
In the meantime, families relying on SNAP will need to make tough choices about how they allocate their benefits. For many households operating within strict monthly budgets, even minor increases in grocery bills can have cascading effects on their overall financial stability.