Trump’s Plan for Affordable Groceries: Are Experts Convinced It Will Work?
By Jake Beardslee ·
January 13, 2025
Soaring food prices have strained American household budgets in recent years. The United States Department of Agriculture (USDA) reported that food costs jumped nearly 10% in 2022—the steepest increase in more than 40 years. While inflation has eased, with price increases slowing to 6% in 2023 and moderating further in 2024, groceries continue to burden American families' budgets. President-elect Donald Trump has pledged to tackle this issue, proposing initiatives to lower grocery costs. Gage Skidmore / Wikimedia
Trump's strategy to tackle high food prices centers on two main approaches: strengthening supply chains and expanding domestic energy production. The plan rests on the premise that boosting U.S. fuel production would reduce transportation costs across the food supply chain—from farms to delivery trucks. Speaking at campaign events, Trump drew direct lines between energy policy and grocery bills, claiming that increased fuel production would lower both gas prices and, eventually, food costs. JASON BEAN/RGJ / USA TODAY NETWORK via Imagn Images
Despite campaigning heavily on lowering grocery costs, Trump acknowledged the challenge ahead. In a Time magazine interview following his "Person of the Year" designation, the president-elect tempered expectations about quickly reducing food prices. "It's hard to bring things down once they're up. You know, it's very hard," he said. JASON BEAN/RGJ / USA TODAY NETWORK via Imagn Images
Trump's focus on grocery prices appeared to resonate with voters during the campaign. "I won on the border, and I won on groceries," he told NBC's Kristen Welker, adding, "When you buy apples, when you buy bacon, when you buy eggs, they would double and triple the price over a short period of time, and I won an election based on that. We're going to bring those prices way down." cottonbro studio / Pexels
However, financial experts are skeptical about the feasibility and effectiveness of Trump’s plan. Lamar Watson, founder of Dream Financial Planning, notes that despite record U.S. energy production, fuel prices remain high. "Major oil companies prioritize maximizing shareholder value, not lowering prices for consumers," Watson explains, GOBankingRates reported. His analysis indicates that energy represents less than 10% of total grocery costs, with labor expenses accounting for the largest share of food prices. Pixabay
Watson also questioned Trump’s ability to impact the supply chain, stating, "Private companies control the supply chain, and none of the middlemen are incentivized to lower prices." Any changes to supply chain operations, he noted, would take a significant amount of time to influence grocery store costs. Watson further cautioned that some of Trump’s proposed policies, such as tariffs and mass deportations, could actually increase labor costs for farmers and inflate prices for imported goods. Since much of the U.S.’s food supply is imported from Mexico and Canada, these measures might exacerbate the problem rather than solve it. Alexas_Fotos / Pixabay
Cecil Staton, president of Arch Financial Planning, echoed Watson’s doubts. "Lowering grocery prices is unlikely to be a realistic outcome," Staton said, per GOBankingRates. "Instead, my hope is that President Trump’s plan will slow inflation and the rising cost of groceries." While Staton and Watson agree that addressing inflation is important, they remain unconvinced that Trump’s proposals will lead to a noticeable reduction in food prices for consumers. frycyk01 / Pixabay
In the meantime, shopping sales, taking advantage of buy-one-get-one-free deals, and opting for store-brand products can help reduce costs. Discount retailers such as Aldi and bulk-buying options at Costco or Sam’s Club can also make a significant difference. Preparing meals at home instead of dining out is another cost-saving measure, as is using rewards credit cards to earn cash back on food purchases—provided the balance is paid off monthly to avoid interest charges. David Tucker / USA TODAY NETWORK via Imagn Images
Though Trump's promise to lower grocery prices appeals to many Americans facing financial pressure, some economic experts note that food costs are driven by complex factors including energy prices, supply chain issues, and global market conditions. In the meantime, consumers may find more immediate relief through smart shopping strategies while broader policy solutions take shape. Alexas_Fotos / Pixabay
