The food and beverage industry faces potential price increases or cost-cutting measures, such as smaller portions or ingredient reformulations, in response to looming trade tariffs initiated by President Trump. With food being highly perishable and reliant on foreign ingredients and packaging, companies may struggle to absorb costs from tariffs on imports, particularly from countries like Canada and Mexico. While some firms might adjust by changing packaging or ingredient sourcing, sectors reliant on imports, like fresh produce, may pass higher costs directly to consumers, prompting concerns over grocery inflation.

Source: https://www.supplychaindive.com/news/trump-tariffs-food-prices-shrinkflation-packaging/740102/