Why Eggs Are Like Tariffs

A recent egg heist could be tough to crack.

This week, in Pennsylvania, thieves stole 100,000 eggs from a Pete & Gerry’s Organics distributor’s truck. Worth $40,000 (and more each day), they might easily be sold.

At a relative high a month ago, egg prices have continued rising to stratospheric levels. During January 2025, we paid an average of $7.09 for one dozen:

Eggs and Tariffs

Eggs

Close to $9.00 a dozen in California, paying for eggs takes a hefty slice of what we earn –especially for a lower income household:

The lowest income households spent an average of $5,278 on food. As 32.6% of their after tax income, the total was a massive slice of their income pie. Meanwhile, a middle income household’s total was $8,989 (13.5% of after tax income). And, much less of their after tax income at 8.1 percent, the highest quintile spends an average of $16,996 on food each year.

We have to wonder if the typical person in the U.S. will continue eating 280 eggs a year.

Tariffs

Tariffs also hit the less affluent hardest:

Our Bottom Line: Regressive Policies

As economists, looking at eggs and tariffs, we can cite their regressive impact.  When referring to taxes, regressive means the policy takes a higher percent from lower income households. A good example is the 18.3 cent gas tax. All of us will pay $1.83 as the tax total for 10 gallons of fuel. However, for workers earning the federal minimum of $7.25 an hour, the tax is a higher proportion of that wage than for someone earning the $14.00 minimum in a different state.

Correspondingly, when we pay more for eggs, it takes a higher percent from those of us that earn less. And, as Axios displayed, tariff rates also target items purchased by lower income households.

Returning to today’s title, a regressive impact makes eggs and tariffs similar.

My sources and more: One of many possibilities, the NY Times had the best description of the recent egg heist. From there, following the low income thread, the USDA had the data on egg prices and household spending. Then, my Axios Markets newsletter had the tariff facts. But for the best tariff discussion, do look at the Progressive Policy Institute. And finally, econlife explained the pop in egg prices here.