Foods susceptible to potential decrease in size due to tariffs:
Tariffs and Shrinking Groceries: A Primer
In the ongoing trade war between the U.S. and parts of the world, businesses and consumers alike find themselves in hot waters. With uncertainty running rampant, shoppers are left groping in the dark, unsure of what to expect next. For the food industry, particularly smaller companies, the situation gets even trickier - they may have to bite the bullet and either hike prices or rethink their portion sizes to cut costs.
A brief reprieve from tariffs gives food companies some breathing room to plot their strategies, and that could mean a quiet form of price hike: shrinkflation. Here's a breakdown of seven foods that might quietly shrink in size as the tariffs hit manufacturers.
Shrinking Cereal Boxes
Imported boxes of oats and cereal could soon become smaller for the same price. Consumers should get into the habit of checking the unit price of items on the grocery shelf, suggests John Breyault, vice president of public policy, telecom and fraud at the National Consumers League. This way, it's easier to compare the per unit price of one item, for example, cereal, to another.
Steep Coffee Prices
Almost all the coffee consumed in the U.S. is imported, making it vulnerable to tariff-related price hikes. Coffee prices were already sky-high before the tariffs due to poor weather conditions and harvests. If the tariffs impact coffee imports, many companies might offer smaller packages for the same price. Organic coffee could cost even more.
Squeezed Burgers
Fast food patrons have long complained about shrinking burgers and sandwiches. The tariffs could make this trend worse for chains that rely on cheaper, imported meat from Brazil, Australia, and New Zealand. They might have to offer smaller sandwiches for the same price to offset costs.
Rolling with the (Toilet Paper) Punches
Pulp used to make toilet paper and toilet paper rolls is imported from countries such as Canada. This could result in customers paying the same price or higher for smaller rolls, or fewer rolls per package. Eagle-eyed shoppers have already caught certain brands sneakily making this move. "Shrinkflation is a sneaky little way around price hikes," says LendingTree chief consumer finance analyst Matt Schulz.
Shrinking Chocolate and Candy Bars
U.S. imports cocoa beans from Africa and South America for making chocolate bars - which are already smaller - and tariffs could make these sweets more expensive. "I just bought these mini-sized Snickers recently for a quarter, and I didn't notice until a customer pointed it out because she found it hilarious how small they are," recalled one Redditor.
Swindling Snack Items
Snack items like chips may end up getting even smaller portions as a result of tariffs on packaging. However, prices are likely to stay the same or increase. In such a scenario, customers might feel swindled due to the deceptive nature of the move.
Scaled-down Fish Sticks
The frozen fish aisle may soon offer less product for the same or more money. China exports a lot of frozen fish products to the United States, making them susceptible to tariff-related price hikes.
"People are already frustrated that things cost more," says Schulz. "Shrinkflation just adds insult to injury. It's all part of a lot of Americans feeling squeezed every month to afford the basic things they can't do without."
- Some food companies might choose to implement shrinkflation as a form of subtle price hike, reducing the size of organic food-and-drink products like cereal boxes, chocolate bars, and snack items.
- Personal-finance experts advise checking unit prices when shopping for food-and-drink items, as this strategy could become increasingly important due to sudden price increases or size reductions in products.
- The tariffs could lead to a rise in the prices of imported goods, such as coffee and toilet paper, forcing consumers to pay the same price or more for smaller packages or quantities.
- Businesses involved in the food-and-drink industry, particularly fast food chains and smaller companies, may have to adapt to the tariff situation by shrinking portion sizes or hiking prices, affecting personal-finance budgets and general-news headlines.
