United States President Donald Trump removed tariffs on many food items, including beef, coffee, tropical fruits, tomatoes, bananas, tea, fruit juice, cocoa, spices, and some fertilisers, after concerns about high grocery prices. The new exemptions take effect retroactively from Thursday midnight. This is a reversal for Trump, who had said tariffs were not causing inflation. The move will likely lower prices for American consumers.
The order does not completely remove tariffs, but it exempts these goods from the “reciprocal” tariffs, which range from 10% to 50%. For example, tomatoes from Mexico, a major supplier to the US, will still face a 17% tariff. This rate started in July after a nearly 30-year-old trade deal ended. Tomato prices rose soon after the tariffs were introduced. CNN reported that many of the commodities that will no longer face “reciprocal” tariffs have had some of the biggest price increases since Trump took office. This is partly due to the tariffs he imposed and limited domestic supply.
Trump on dropping tariffs
Before Friday’s executive order, United States Secretary of the Treasury, Scott Bessent said the changes focused on goods “we don’t grow here in the United States,” like coffee and bananas. While some coffee is grown in the US, most is imported. Meanwhile, Trump aboard Air Force One said “We just did a little bit of a rollback on some foods like coffee,” after the announcement was made.
Why did Trump decide roll back tariffs?
One potential reason why Trump slashed the tariffs could be that the consumers were struggling with high prices. In recent off-year elections, voters ranked the economy as their top concern, helping Democrats win big in Virginia and New Jersey. Notably, Democrats recently won elections in Virginia, New Jersey, and New York City, where affordability was a major issue. The Trump administration also announced trade deals with Argentina, Ecuador, Guatemala, and El Salvador, which will remove tariffs on some foods and other imports. More deals may follow before the end of the year.
