American shoppers hoping that domestically produced goods would shield them from rising prices may be in for a surprise. Even products manufactured within the United States could become significantly more expensive if tariffs on raw materials are imposed or increased.
While much of the political focus has been on finished goods imported from overseas, raw materials—such as steel, aluminium, plastics, cotton, and even pulp used for paper—are often sourced internationally. Tariffs on these essential inputs inevitably raise the cost of production, meaning that the final product on supermarket shelves will cost more, regardless of whether it’s made in the USA.
Major retailers like Walmart, Albertsons, and Kroger depend on vast and complex supply chains that combine both domestic and international resources. For example, a paper towel or toilet roll may be manufactured in a U.S. facility, but if the pulp comes from Canada or Brazil, tariffs on that pulp directly impact the price passed on to consumers.
Similarly, clothing items, even when sewn in America, rely on cotton or synthetic fibres often imported from countries like India, China, or Pakistan. If tariffs apply to those imports, the price of basics like socks, T-shirts, and baby clothes could double—hitting low-income shoppers the hardest.
Supermarkets Caught in the Middle
Retail chains are already facing inflationary pressures, with food, energy, and transport costs all rising over the past three years. The threat of further tariffs—particularly under a potential new Trump administration—would place additional strain on margins and likely trigger a new wave of price increases.
“Even American-made doesn’t mean tariff-free,” one supermarket procurement executive told ISN. “It’s all connected—raw materials cross borders before becoming finished products. Tariffs just ripple through the entire supply chain.”
A Risk to Price Stability
For major supermarket players, absorbing these costs is not a sustainable option. As a result, shelf prices will reflect the new cost reality, and this could influence consumer behaviour, pushing more shoppers towards discounters, or private-label alternatives.
In the long run, persistent tariffs may discourage domestic manufacturing, ironically weakening the very “Made in America” agenda that such policies aim to support.
ISN Reveal Insight:
Even products stamped with “Made in USA” are not immune from global pricing pressures. Tariffs on raw materials can drive up costs across the board, and supermarkets like Kroger, Walmart, and Albertsons will have little choice but to pass those increases on to the customer. As 2025 unfolds, tariff policy may become a central issue—not just in politics, but in the price of everyday essentials.
