A new Purdue University study finds that North American trade agreements have helped lower U.S. food prices, generating estimated savings of approximately $700 per year for households in today’s dollars — equivalent to roughly 7% of total household food expenditures.
The research comes as food costs remain a strain for American families and policymakers prepare for the upcoming review of the United States-Mexico-Canada Agreement, established in 2020.
Tariff reductions drive savings
The study, commissioned by the Corn Refiners Association in partnership with the Agricultural Coalition for USMCA, found that every 1% reduction in tariffs on food products corresponded with an average 2.8% decrease in consumer food prices over a decade.
The research warns that without USMCA, tariffs could rise by an average of 7.4% above current levels, effectively eliminating consumer food-cost savings within 10 years.
Lower-income households benefit most
The affordability benefits prove especially important for lower-income households, which spend a greater share of their income on food and face the greatest vulnerability to rising grocery costs.
“Food affordability remains one of the top concerns for American families, and this study makes clear that USMCA is part of the solution,” said John Bode, president and CEO of the Corn Refiners Association.
Supply chain improvements
Beyond cost reductions, North American trade agreements have supported year-round availability of products, expanded consumer choice and improved efficiency across agricultural supply chains. Export-oriented U.S. agricultural products like corn and wheat experienced lower domestic prices as trade barriers were eliminated.
