Re: Food Prices

On 5/26/2025 2:39 PM, Jeff Liebermann wrote:

On Mon, 26 May 2025 13:18:49 -0500, AMuzi <am@yellowjersey.org> wrote:
 

On 5/26/2025 12:34 PM, Jeff Liebermann wrote:

On Mon, 26 May 2025 17:24:06 GMT, cyclintom <cyclintom@yahoo.com>
wrote:
>

On Sun May 25 18:28:31 2025 Shadow  wrote:

On Sun, 25 May 2025 20:07:33 GMT, cyclintom <cyclintom@yahoo.com>
wrote:
>

At the local supermarket, food prices have been dropping like rocks. Take for instance, wine, Apothic red mixes just scant weeks ago were showing $16.99 reduced to $10.99. Now, the same thing is $10.99 reduced to $6.99. Bread is almost back to pre-Biden. I'm telling you, those tariffs are really killing us. Certainly not everything has gone down but I'm assuming that they soon will.

>
So an increase in taxes lowered prices?
Sounds like raising taxes is a good idea, then, and everything
I learned about economy was wrong.
[]'s
>
PS Maybe not for you. You can't drink alcohol. Read the
absolute contraindications of your meds.

>

Where were taxes raised?

>
A tariff is a tax on imported goods.  The importer pays the tax, which
is then passed on to distributors, dealers, and eventually individual
buyers.
>

 

Mr Kunich's chosen plonk (Apothic) is domestic.

 Thanks.  The importer or distributor probably does not pass on their
increased tariff costs by individual items.  The distributor probably
also sells foreign wines that are subject to tariff taxation.  My
guess(tm) is that the distributor will pass on a single uniform
percentage price increase across their entire wine inventory because
it's easier to administer.  If we see the price of domestic wines
increase along with imported wines, that's a likely cause.
 

There have been price drops on domestically produced alcohol for a good reason - the export market has 'dried' up largely due to Canadian trade sanctions which constitute a significant portion of US exports. From there it's a simple application of the laws of supply and demand.
Apothic is one of our favorite vineyards (we hold Michael David as our top pick). Both are Nor Cal wineries (Modesto and Lodi) that until trumps latest temper tantrum had a substantial Canadian market. Until the orange man-child decided to wage economic war on our closest ally, Canada was the signal largest US wine export market but a significant margin.
No more...
https://www.decanter.com/wine-news/trumps-us-tariffs-may-raise-prices-warns-eu-wine-body-554002/
"Wine Institute president and CEO Robert P. Koch said, ‘Today’s announcement of new tariffs will only make it harder for American wineries to regain access to Canada, by far our most important export market. In early March, Canada cleared its shelves of all U.S. wine and continues to block its sale.’ "
https://www.sommelierindia.com/u-s-wineries-recoil-from-canadian-tariffs/
It's no wonder there is a significant drop in Apothic prices. While good for the consumer in the short term, it's devastating to the US wine industry.
Wines are not alone.
https://abcnews.go.com/Politics/kentucky-bourbon-exports-risk-trump-canada-trade-tensions/story?id=121530023
"Kentucky's bourbon industry faces potential devastation as President Donald Trump's latest tariff dispute with Canada threatens to halt $43 million in annual whiskey exports. "
https://www.lcbo.com/content/lcbo/en/corporate-pages/lcbo-response-to-u-s--tariffs--q-a.html
"How long will these restrictions last?​
U.S. products are no longer available for purchase until the LCBO is directed by the government to resume normal business.  ​
Can I get U.S. products from other licensed retailers?​
Wholesale customers, including grocery and convenience stores, bars, restaurants, and other retailers, are no longer able to place orders of U.S. products. It is at their discretion to sell existing inventory.​"
We've seen a drop in bourbon prices locally - Law of supply and demand. Good for us US consumers in the short term, but costing US jobs and driving prices up in the long term. Idiots like kunich will try to blame this on fictitious tableaus of Biden DEI policies.
--
Add xx to reply