Economic analysts tore into Trump's idea for lowering grocery prices Tuesday, saying it won't work — and will cause more harm than good, according to a new report.
"The president declared that he was taking 'a very historic action to substantially lower costs for consumers,'" MS NOW political contributor Steve Benen wrote, referring to Trump's comments at a May 21 event.
"I have bad news for those who believed him."
Trump has been touting his success in lowering grocery prices, according to Benen. The Trump administration loosened federal regulations that require grocery stores and air-conditioning companies to reduce greenhouse gas emissions from cooling equipment, according to reporting by AP.
Although Trump said the move would "substantially lower costs for consumers," AP reported, Benen pointed to a story from The New York Times that found it will "likely have little impact on prices," based on market analysts.
"This move is highly unlikely to produce any noticeable reduction in grocery prices for consumers," food economist David Ortega told the NYT. "We're talking about refrigeration, and that's a very small share of the overall cost of food."
According to market analysts who spoke to the NYT, the bigger driver of grocery store prices is "tariffs, extreme weather, and soaring fuel prices since the start of the conflict in Iran."
According to reporting by NOTUS, the savings might amount to "$2 per year." Meanwhile, industry groups told the AP that Trump's supposed quick fix "could even raise prices because manufacturers have already redesigned products, retooled factories and trained workers" for newer refrigeration equipment.