NextFin news, On Saturday, September 20, 2025, it was reported that the tariffs imposed by former US President Donald Trump have indirectly led to lower food prices in Mexico and Brazil. This development contrasts with rising food prices in the United States, where consumers are experiencing inflation on tariff-affected goods.
In Brazil, prices for staples such as coffee, meat, rice, and tomatoes have decreased. According to a study by the Institute for Statistics and Socioeconomic Studies (Dieese) and the National Supply Association (Conab), 24 out of 27 Brazilian state capitals saw a drop in basic food prices in August compared to July. Julien Freitas, a consumer in Rio de Janeiro, noted the noticeable price reductions in coffee and meat at local supermarkets.
Experts attribute this price drop partly to agricultural cycles, such as a good coffee harvest and increased cattle fattening, but also significantly to the impact of US tariffs. Leandro Diaz from the Brazilian platform AgroDeri explained that high US tariffs on Brazilian exports have caused products originally destined for the US market to remain in Brazil, increasing domestic supply and lowering prices.
Similarly, in Mexico, the price of tomatoes has fallen. Javier Reyes Escamia, president of the Northern Livestock Association, stated that producers are redirecting their high production to domestic markets instead of exporting to the US due to tariffs, resulting in lower prices for Mexican consumers.
However, economists warn of potential long-term negative effects. Brazilian economist Dirlen Silva highlighted that losing access to the US market could reduce incentives for producers to invest in technology and productivity, potentially leading to lower quality and higher prices in the future.
Thus, while consumers in Mexico and Brazil currently benefit from cheaper food prices due to Trump's tariff policies, the long-term economic consequences for exporters remain uncertain.
Sources: Vijesti.me (September 20, 2025), Deutsche Welle, Institute for Statistics and Socioeconomic Studies (Dieese), National Supply Association (Conab).
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