Article Summary –
Kamala Harris proposes a federal ban on food price gouging and enhanced FTC oversight to prevent industry consolidation, addressing high grocery prices. In contrast, Donald Trump suggests imposing tariffs and reducing food imports to lower prices, criticized by economists for likely increasing costs and reducing supply.
Kamala Harris vows to push for a federal ban on price gouging and enhance government authority to curb food industry consolidation, while Donald Trump proposes tariffs that could increase food prices.
Democratic nominee Kamala Harris released her economic agenda, focusing on tackling food price gouging.
Responding to high grocery bills, Harris said she’d seek to “pass the first-ever federal ban on price [gouging] on food.”
“My plan includes penalties for exploitative companies and support for smaller food businesses,” Harris stated. “We will foster competition, the lifeblood of our economy.”
Harris’ proposal addresses pandemic-era food price increases and corporate profits and consolidation among food producers and grocery stores, with accusations of price-gouging.
Harris also noted the “extreme consolidation in the food industry” contributes to higher grocery bills, advocating for FTC actions to prevent this consolidation.
Where Does Trump Stand?
Trump’s policies might increase grocery prices, despite his promises to reduce them via tariffs.
At a campaign event, Trump advocated for tariffs on imported goods.
“We allow a lot of farm products into our country. We’re going to let our farmers work,” Trump said.
Economists argue that his plan is illogical and would raise prices.
“This shows a lack of economic understanding,” Dean Baker, senior economist at the Center for Economic and Policy Research, wrote on X.
Former US Labor Secretary Robert Reich emphasized the absurdity of Trump’s plan.
“Trump’s plan to lower food prices is to reduce food supply. Think grocery prices are high now? Just wait,” Reich said on X.
About 15% of the US food supply was imported last year, including 94% of seafood and 32% of fresh vegetables, FDA reports.
Trump’s tariffs could decrease supply, increasing prices, with grocery stores and consumers bearing the costs.
“Importers will pass on costs to consumers,” Stephen Craven, former trade negotiator, wrote for CNN.
American farmers might increase production over time, but long-term shortages could occur, as Cato Institute’s Scott Lincicome noted.
“Prices could drop to zero if food can’t be grown in the US,” Lincicome wrote on X.
Tariffs often lead to retaliatory measures from other countries, escalating trade wars that affect consumers.
China imposed retaliatory tariffs on US products like soybeans and pork during Trump’s first trade war, causing export drops over 70% for some producers.
“The Trump administration resulted in one of the highest trade deficits,” Kamala Harris said in a recent debate. “He invited trade wars.”
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