Sen. Elizabeth Warren (D-MA) is criticizing President Donald Trump’s trade and tariff policies for the sharp rise in wholesale vegetable prices last month.
Wholesale Vegetable Prices Skyrocket
On Tuesday, in a post on X, Warren highlighted that the wholesale price of vegetables in July “skyrocketed by a WHOPPING 40 PERCENT,” laying the blame squarely at Trump’s tariffs, saying, “You can thank Donald Trump's chaotic tariff policies” for this.
Warren said this while linking to an article by NBC’s TODAY, which notes that the price increase is “the biggest one-month move for a summer month in almost a century.”
See Also: Hot Inflation Report Fuels Fed Dilemma As Tariff-Driven Pressures Mount
In addition to the tariffs, the article highlights the ongoing labor shortages, resulting from the Trump administration’s deportation efforts, as a key reason behind the rising cost of vegetables.
Trump had directed immigration officials to halt workplace raids in labor-intensive sectors such as farms, hotels, restaurants and meatpacking plants a few months ago, in order to avoid destabilizing markets and critical supply chain elements.
Hotter-Than-Expected Producer Inflation Shocks Markets
Last week, the July Producer Price Index logged its biggest monthly gain in three years, with core prices up 0.9%, and 3.7% on a year-over-year basis, which was ahead of expectations at 2.9%.
Goods prices rose 0.7%, which was led by a 1.4% jump in food costs during the prior month, leading to fresh and dry vegetables, eggs, meats, and more all becoming more expensive during the period.
The markets dropped following the report, amid concerns that Trump’s tariffs were beginning to impact prices in the supply chain, before making their way to store shelves.
Elizabeth Pancotti, managing director at Non-profit think-tank and progressive advocacy group, Groundwork Collective, says, “there is no mistaking it,” while blaming Trump’s tariffs for driving costs for farmers, which will ultimately lead to higher grocery prices for American families.
According to Pancotti, “wholesale prices for grocery staples are squeezing American families even further in the checkout line.”
Photo Courtesy: David Garcia on Shutterstock.com
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