Rising food costs in restaurants and grocery stores have already been brutal for New Yorkers, and there’s not much relief in sight with the steep tariffs that President Donald Trump has just implemented.
Trump announced this week that the U.S. would be instating tariffs on imported goods from China, Mexico, and Canada “with no clear rationale,” as the New York Times reports. Trump’s own chaotic reasoning for the tariffs includes “Canada’s hostility toward American banks,” among other vague offenses, according to the Times.
The tariffs in effect are 10 percent on all Chinese imports dating back to February 4, with an additional 10 percent since March 4, bringing it to a total of 20 percent going forward; 25 percent on all imports from Mexico since March 4; and 25 percent on most imports from Canada. There will likely be additional tariffs by April 2, which include “unspecified agricultural tariffs” worldwide, the Times reports.
China, Canada, and Mexico are implementing retaliatory responses, which include tariffs on American products. Governments are taking other measures such as Ontario pulling all U.S. alcoholic and nonalcoholic beverages off shelves, according to a Liquor Control Board memo to Canadian suppliers on March 4.
New York City restaurateurs are bracing for ingredient prices to go up yet again in response to these tariffs, on top of egg price hikes due to bird flu and general price hikes stemming from the pandemic. The Washington Post reports that the price of items from Mexico such as avocados could go up as much as 50 cents apiece.
“So many prices have been going up basically weekly, so it’s hard to figure out how or when to make changes,” says Matt Diaz, the owner of Mexican spot For All Things Good in Bed Stuy. “With the tariffs now, it will certainly be a good time to recalculate food costs and see,” he says. Diaz is also behind Bed Stuy’s Bar Birba and the upcoming Disco Birdies.
Chris Reyes, the owner of Taqueria El Chato in Greenpoint, says that his main purveyor, a Mexican product distribution company, has told him to expect prices to increase by a whopping 25 percent because of the tariffs. “He told me essentially my entire order will go up,” Reyes says. “Everything I buy is imported except for the proteins.”
This will, in turn, have an impact on the restaurant’s menu prices. “I’m not sure how people feel about paying $8 for a taco,” Reyes says.
Some restaurateurs anticipate that due to changes such as China no longer importing some American products — which it is doing in response to the US-imposed tariffs — items like American beef will go down in price. Mark Bucher, the owner of steak frites mini-chain Medium Rare with locations in NYC, D.C., Virginia, and Massachusetts, says that he has seen the price of American beef will actually decrease and he sees stability for his menu prices.
Like everybody else, Diaz at For All Things Good is hoping that this chaos is short-lived. “I hope this isn’t something that lasts,” Diaz says. “I can’t think of anyone who thinks these tariffs benefit them, and a lot of people are going to be hurt by them.”
The tariffs come as food costs have already been increasing across the city. According to a new survey conducted by No Kid Hungry, over half of New Yorkers have seen their debt increase over the past year due to skyrocketing food prices, which has in turn greatly affected people’s mental and physical health. AMNY first reported news of the survey.
The survey of 1,596 New Yorkers across the state conducted from February 8 to February 14 found that 53 percent of New Yorkers have taken on more debt over the past 12 months as food costs have risen. Eighty-six percent of New Yorkers reported that the cost of food was rising faster than their income level over the same time period. Communities of color are disproportionately impacted. Specifically, 73 percent of Hispanic families have taken on extra debt in order to feed their families, according to the survey results.
The added stressors have been detrimental to people’s overall well-being. Sixty-three percent of New Yorkers reported that their mental health has suffered over the past year in the wake of these rising costs, and 52 percent reported that their physical health has suffered.