USMCA linked to lower food prices, Purdue study shows

A new Purdue University study is highlighting the role of the United States-Mexico-Canada Agreement (USMCA) in helping keep food prices lower for consumers while supporting the integrated North American agricultural supply chain that many fruit and vegetable producers rely on.

Released by the Corn Refiners Association (CRA) in partnership with the Agriculture Coalition for USMCA, the USMCA Affordability Study: Effect of North American Trade on U.S. Food Prices found that tariff reductions under North American trade agreements have generated an estimated $700 in annual savings for U.S. households in today’s dollars, equal to about 7% of total household food spending.

According to the study, every 1% reduction in tariffs on food products corresponded with an average 2.8% decline in consumer food prices over a 10-year period. Researchers also found that without USMCA, tariffs could rise by an average of 7.4%, potentially erasing those consumer savings within a decade.

Beyond food affordability, the report points to the importance of cross-border trade in maintaining year-round availability of fresh produce and other food products, expanding consumer choice and improving supply chain efficiency across North America.

“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.

The study notes that integrated trade among the United States, Mexico and Canada has helped strengthen agricultural supply chains and support market access for a wide range of agricultural products. For specialty crop growers, the agreement has contributed to the reliable movement of fresh fruits and vegetables across borders, helping retailers meet consumer demand throughout the year.

Researchers also found that lower-income households benefit disproportionately from lower food prices because food represents a larger share of household spending.

“USMCA supports consumers, producers and strong North American food supply chains,” said Bryan Goodman, spokesperson for the Agriculture Coalition for USMCA. “Preserving this trilateral agreement is essential to keeping food affordable and supply chains strong across the United States, Mexico and Canada.”

The findings come as U.S. and Mexican officials continue discussions related to the agreement’s review process and as food inflation remains a major concern for consumers. The study was commissioned to evaluate the impact of USMCA on U.S. consumers and the broader food system as policymakers consider the future of the trade pact.

For specialty crop growers, the report underscores the economic importance of maintaining stable trade relationships that support market access, supply chain reliability and year-round availability of fresh produce.