Purdue survey: Consumers expecting higher food prices with tariffs

A majority of consumers are expecting to see higher prices at grocery stores and restaurants if President Donald Trump’s proposed tariffs are enacted, according to a new survey from Purdue University.

The Consumer Food Insights report from the Center for Food Demand Analysis and Sustainability at Purdue surveys more than 1,200 adults across the country to track trends and changes in consumer food demand and food sustainability behaviors.

Joe Balagtas, professor of agricultural economics and the director of the Center for Food Demand, says consumers were asked what they thought the effect of the president’s proposed 25% tariffs on imports from Canada and Mexico—which are currently being paused—would be.

“The biggest concern is that tariffs would increase the prices of imported foods, also of domestically produced foods that compete with those imported foods,” Balagtas said. “And so, the effect on prices is top of mind. Seventy-two percent of respondents tell us that they expect higher food prices if tariffs are enacted.”

However, the report did show some disparity on the view of tariffs based on political party affiliation.

According to the survey, 52% of Democrats believe tariffs would lead to substantial price increases for food, compared to 35% of independents and just 22% of Republicans.

The January survey also asked consumers how satisfied they are with their diets. The report showed 86% found they are happy or very happy with their diets, while 14% said they are not happy.

Balagtas noted that that number has been stable over the past three years.

“What’s surprising is that that level of happiness has remained steady despite really big swings in the economy, really big changes in prices and inflation over the past three years,” he said. “And the fact that food unhappiness didn’t increase during a time of record inflation really is a testament to the strength of the American economy. And in particular, the fact that food is relatively affordable.”

However, Balagtas noted that individuals with lower incomes feel the impact of food prices more deeply because a higher share of their income is spent on food.

“Those Americans with lower incomes tell us they’re about twice as likely to tell us that they’re unhappy, unsatisfied with their diets,” he said.

The report said that on average, consumers reported spending about $122 per week on groceries and $67 per week on restaurants over the last 30 days. The survey also estimates national food insecurity to be 16% in January, which is higher than the 2023 and 2024 average.

You can connect to the full report by clicking here.

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