President Donald Trump has signed an executive order creating food-supply-chain security task forces within the Justice Department and the Federal Trade Commission (FTC) to address risks from price fixing and other anti-competitive practices.
Task Force to Probe Food Supply Risks
The executive order signed on Saturday aims to safeguard the “stability and affordability” of the American food supply, particularly in the face of alleged anti-competitive behavior by foreign-controlled corporations.
Trump said in the order, the food supply sectors, including meat processing, seed, fertilizer, and equipment, are identified as vulnerable to price fixing and other anti-competitive practices. The task forces will investigate these industries to determine whether anti-competitive behavior is occurring within U.S. food supply chains. They will also examine whether foreign control of food-related sectors is driving up costs for American consumers or creating national or economic security risks.
If the investigation reveals anti-competitive behavior, the Attorney General and the FTC Chairman may take appropriate action, including criminal proceedings, pursuing enforcement cases, or recommending new regulations.
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Economists Warn Of Affordability Crisis
The establishment of food supply chain security task forces comes in the wake of a perceived rise in grocery prices in the U.S. Despite the Trump administration’s efforts to mitigate the surge through tariff exemptions, there are concerns surrounding a looming affordability crisis.
Moody's Analytics Chief Economist Mark Zandi warns the U.S. is facing a "serious affordability crisis," arguing that stubborn 3% inflation is being driven largely by policy choices, specifically higher tariffs and tighter immigration rules, rather than natural economic forces.
That being said, data earlier this month shows Core PCE, the Fed's preferred inflation gauge for September, eased from 2.9% to 2.8%, while personal income climbed 0.4%, above the expected 0.3%, driven by higher compensation and higher income from assets. Monthly inflation for September advanced 0.3%, in line with August’s pace and expectations
Notably, in November, Trump ordered the Justice Department to investigate major meatpacking companies for suspected price manipulation in beef, pointing to concerns over foreign ownership and market distortions impacting U.S. ranchers and consumers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
