• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Economy
A customer shops in a grocery store in Miami, Florida Joe Raedle/Getty Images

Trump admin says EPA rollback of Biden-era rule ‘will be felt directly by American families in lower grocery prices.’ Are they over-promising?

Americans are feeling downright dour about the economy, and affordability is at the center of it all. But the Trump administration is saying there could be relief ahead in one key area: groceries – to the tune of over $2 billion.

The American consumer is certainly ready for some better news about prices. Sentiment for May hit a record low – meaning Americans are feeling worse than they have since the University of Michigan survey started collecting data in 1952.

Advertisement

In a statement, Joanne Hsu, director of the survey, said, “The cost of living continues to be a first-order concern, with 57% of consumers spontaneously mentioning that high prices were eroding their personal finances.” She added, “Critically, consumers appear worried that inflation will increase and proliferate beyond fuel prices, even in the long run.”

Grocery prices soaring as Americans feel glum

One major price concern is around something we all need to survive – food. And there’s good reason for that worry – grocery prices just saw their largest month-to-month leap since 2023, rising 2.9% in April compared to a year ago. Amid fuel shocks, weather woes and tariffs, shoppers have seen prices for some foods escalate more than others: Beef prices are near record highs, coffee will cost you almost 20% more than it did last year and tomatoes are up a whopping 40%. And some experts say things could get worse.

This is where some promises from the Trump administration come in. The EPA announced on May 21 they would be rolling back two Biden-era rules that sought to reduce the use of hydrofluorocarbons (HFCs) used for air conditioning and refrigeration.

HFCs are considered by climate scientists to be a serious pollutant. As the Climate & Clean Air Coalition reports: “Though HFCs currently represent around 2% of total greenhouse gases, their impact on global warming can be hundreds to thousands of times greater than that of carbon dioxide (CO2) per unit of mass.”

Biden’s move to limit HFCs was part of an aim to cut them by 85% by 2036 – and they also argued businesses and consumers would see cost savings of $4.5 billion due to increased efficiencies and the lower cost of HFC substitutes.

Must Read

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

‘President Trump is righting another wrong’

But current Environmental Protection Agency (EPA) head Lee Zeldin doesn’t see it that way. Appearing at the White House to join in the announcement about extending the deadline for a phaseout of HFCs used in air conditioners and refrigerators, he claimed this move would lead to a savings of $800 million for supermarkets alone, “which Americans will be able to see when they go and buy their food.” This is because a wider variety of refrigerants would still be available to businesses.

A second change aims to exempt refrigerant transport from a rule designed to reduce HFC leaks. An EPA release claims the two moves will save families and businesses over $2.4 billion. “This will be felt directly by American families in lower grocery prices,” Zeldin said in a press release.

At the White House, Zeldin went on to say the Biden EPA “face planted” when trying to “jam through” their restrictions, noting that Americans who wanted to “fix” their equipment, such as refrigerators, were instead required to buy much more costly equipment, and that refrigeration trucks were being handed “impossible restrictions to meet.”

Advertisement

But, he said, “Once again, here we are in the Oval Office – President Trump is righting another wrong.”

Kroger CEO Greg Foran also spoke at the event, saying, “An orderly transition of equipment reduces both capital costs and operating costs, and at the end of the day that’s good for consumers because we’re able to take that and put that into lowering prices.”

Will consumers really benefit?

Food industry groups have welcomed this news, which has been in consideration since last year.

FMI-The Food Association President and CEO Leslie G. Sarasin said in a statement that the rollback helps soothe “unnecessary financial burdens on the food industry and grocery shoppers,” allowing grocery stores more time to address labor and supply chain issues when upgrading their systems.

But what isn’t quite clear is if grocery retailers will really pass down any savings to everyday shoppers. While Foran spoke at the event, he didn’t outline any plans directly related to the EPA announcement – and he has already announced plans for massive unrelated price cuts at the store in order to compete with rivals such as Walmart, Trader Joe’s and Amazon.

Foran told Bloomberg these cuts would be made by importing merchandise directly and making better use of technology – refrigeration wasn’t brought up. But Kroger and other large grocery retailers have already made moves toward climate-friendly “natural refrigerant,” so the news may be less relevant to them and more so to smaller grocers who haven’t yet invested in new equipment.

Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Skeptical experts

Experts are skeptical that this move will be felt in the wallets of the average consumer. Food prices today are largely being affected by rising fuel prices, tariffs, weather conditions and major cattle herd shortages, in the case of beef. And the administration has not made it clear how the EPA rollback will directly lead to price cuts on grocery shelves.

Advertisement

As David Doniger, senior strategist for climate at the Natural Resources Defense Council, told NaturalRefrigerants.com, “Shoppers will not notice any cost savings from this. The affordability crisis is very real and deserves real solutions rather than thinly veiled environmental rollbacks that leave the United States stuck with outdated technologies of the past.”

Michigan State food economist David Ortega similarly told the New York Times, “This move is highly unlikely to produce any noticeable reduction in grocery prices for consumers. We’re talking about refrigeration, and that’s a very small share of the overall cost of food.”

And Air-Conditioning, Heating, and Refrigeration Institute President and CEO Stephen Yurek told NaturalRefrigerants.com that this move could even raise prices overall.

“This rule works against basic supply and demand,” he said. “By extending the compliance deadline, the EPA is maintaining and even increasing demand in the market for existing refrigerants while supply continues to fall under the AIM Act.

He continued, “So, instead of falling, refrigerant prices are likely to rise, resulting in higher service costs and higher costs for consumers.” (The AIM act refers to the American Innovation and Manufacturing (AIM) Act of 2020, aimed at reducing HFCs, much of which is still in effect.)

Consumers definitely need a break these days – and Trump may need to give them one, after getting serious criticism following his statement that he doesn’t “think about Americans’ financial situation” amid the Iran war. But it remains to be seen whether this is the right move as weary consumers look for a break in their grocery bills.

You May Also Like

Share this:
Rebecca Stropoli Content Strategist

Rebecca specializes in business, economics and personal finance content. She has worked on consumer-facing and B2B content, including personal finance articles, articles on behavioral economics, trade publication content for financial advisors and white papers for philanthropic organizations.

more from Rebecca Stropoli

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.