Cost of Groceries 'Major Source of Stress' as Trump Tariffs Start to Bite

Polls have shown that U.S. President Donald Trump owes his 2024 election victory in good part to voters' concerns about the rising costs of groceries.

However, an Associated Press poll released on Monday shows that voters are still extremely anxious about food prices at a time when the president's tariffs on imports are threatening to raise prices of staple consumer goods such as coffee and chocolate.

In all, the poll found that 53% of Americans believe the cost of groceries is a "major source of stress," which is higher than the percentage of Americans who say the same thing about the cost of housing, healthcare, and childcare.

Anxiety about grocery prices is particularly strong among Americans earning $30,000 or less per year, as nearly two-thirds of them described paying for groceries as a "major source of stress." However, even Americans earning more than $100,000 weren't immune from the stress of grocery prices, as 40% of them also singled them out as a major stressor.

The poll also highlights the use of "buy now, pay later" plans that 3 in 10 Americans report using to pay for groceries, as well as for entertainment and restaurant meals.

"An increasing share of 'buy now, pay later' customers are having trouble repaying their loans, according to recent disclosures from the lenders," notes the AP. "The loans are marketed as a safer alternative to traditional credit cards, but there are risks, including a lack of federal oversight. Some consumer watchdogs also say the plans lead consumers to overextend themselves financially."

The AP poll was released on the same day that CNBC reported that small businesses across the United States are at their breaking point when it comes to efforts to keep prices down in the wake of Trump's tariffs.

Melanie Abrantes, an Oakland, California-based business owner, told CNBC that she'll likely have to raise prices by the end of the year and warned that "everything is about to get really fucking expensive" thanks to the tariffs.

CNBC also cited a report from economists at Wells Fargo that projected retailers' power to keep a lid on tariff-related price hikes is rapidly weakening.

"While inventory front-running has mitigated the need to raise goods prices, it will become increasingly difficult for businesses to absorb higher import duties as pre-tariff stockpiles dwindle," wrote Wells Fargo. "We expect core goods prices to pick up further in the second half of the year as a result."