Belle breaks down the 38.9% spike in wholesale vegetable prices from June to July—the largest summer increase since records began in 1947. While not entirely due to Trump’s tariffs, his trade policies and labor restrictions are major contributors. Tariffs raise costs on imports, fertilizer, and farm equipment, while labor shortages further strain supply.
Other possible factors include normal market fluctuations or “catch-up inflation,” since veggie prices had been unusually low compared to overall inflation in recent years.
If the surge continues, it will ripple through the economy—raising costs for restaurants, schools, hospitals, hotels, and eventually processed foods like frozen meals and condiments. Economists didn’t expect tariffs alone to cause such a sharp jump, suggesting other forces are also at play.
Bottom line: If price hikes like this persist, Trump may be forced to abandon his trade war, as sustained food inflation could seriously damage the economy.
