U.S. Vice President JD Vance acknowledged Sunday that Americans will need to wait before seeing relief from high grocery prices, despite the President Donald Trump administration’s flurry of executive orders in its first week back in office.
What Happened: “Prices are going to come down, but it’s going to take a little bit of time,” Vance said on CBS’s “Face the Nation.” He linked future price decreases to the administration’s energy policies, arguing that lower fuel costs would eventually reduce transportation expenses for consumer goods.
The comments come as Wall Street weighs the inflation impact of Trump’s proposed tariff increases. Goldman Sachs warned in a recent analysis that a universal 10% tariff could boost headline inflation by up to 1 percentage point in a worst-case scenario.
JPMorgan Chase CEO Jamie Dimon offered support for the tariffs at the World Economic Forum, saying “If it’s a little inflationary, but it’s good for national security, so be it.”
The administration plans to implement 10% tariffs on Chinese goods and 25% tariffs on Canadian and Mexican imports starting Feb. 1, despite concerns from economists about increased consumer costs.
Why It Matters: Vance defended the administration’s early actions, citing executive orders aimed at increasing domestic energy production and capital investment. “We’ve accomplished more than [Former President] Joe Biden did in four years,” he claimed while acknowledging that “Rome wasn’t built in a day.”
The vice president emphasized that energy costs impact everything from transportation to agricultural production: “How does bacon get to the grocery store? It comes on trucks that are fueled by diesel fuel. If the diesel is way too expensive, the bacon is going to become more expensive.”
Trump has declared a national energy emergency, pledging to expand U.S. oil drilling and revoke the electric vehicle mandate. His focus is on restoring the Strategic Petroleum Reserve and flooding the market with American energy, which immediately impacted oil markets.
Financial markets continue to monitor the administration’s economic policies as the Federal Reserve weighs potential interest rate cuts against inflation concerns.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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