US President Donald Trump has enacted an executive order permitting a variety of food items, such as coffee, bananas, and beef, to bypass his extensive tariffs.
This action occurs as his administration encounters increasing pressure regarding rising costs. While Trump had previously minimized worries about living expenses, he has shifted focus to the subject after his Republican Party’s disappointing results in the recent elections.
The numerous items listed by the White House for exemptions include avocados and tomatoes, along with coconuts and mangoes.
These products, the Trump administration stated on Friday, cannot be sufficiently produced within the country.
Trump has consistently claimed that his tariffs – which currently start at 10% on imports from all nations, with added charges on various trading partners – would not result in increased costs for US shoppers. He has also dismissed affordability as a “new term” and a “scam” perpetrated by Democrats.
He has contended that these taxes are essential for reducing the US trade deficit – the disparity between the worth of imports and exports. Trump asserts that the US has been taken advantage of by “cheaters” and “looted” by foreigners, suggesting that elevated tariffs would motivate Americans to purchase domestic goods instead.
However, rising grocery prices and the surging cost of beef have emerged as a political concern for Trump. Last week, he called for an investigation into the meat-packing sector, alleging that companies engaged in “Illicit Collusion, Price Fixing, and Price Manipulation”.
He has sought to garner support for these taxes, proposing $2,000 tariff rebate checks to American citizens – even as the US Supreme Court deliberates whether Trump possessed the legal power to impose them.
Nevertheless, the recent exemptions indicate a shift by the Trump administration, as the White House aims to reduce prices by retracting tariffs on select food essentials.
Addressing reporters on Friday, Trump indicated that the decision would impact products not made in the US, “so there’s no safeguarding of our industries, or our food items”.
He mentioned that he does not anticipate further policy reversals to be necessary in the future, stating, “I don’t think it’ll be needed.”
“We just made a slight rollback on certain foods, like coffee for example, where coffee prices were a bit high. They should decrease shortly,” Trump remarked.
Economists have cautioned that companies would shift the burden of tariffs onto consumers, resulting in elevated prices.
Although inflation remained less severe than many analysts forecast in September, most items monitored in the Department of Labor’s inflation report exhibited price hikes, with grocery costs rising by 2.7% compared to the previous year.
The new tariff exemptions for food items under the Trump administration will be retroactively enforced starting midnight on Thursday, November 13, as per the White House announcement.
In another effort to alleviate consumer anxiety regarding grocery prices, the Trump administration declared that import duties on coffee and bananas will be decreased as part of trade agreements with four Latin American nations.
This week, Trump and Treasury Secretary Scott Bessent both pledged to lower coffee prices by 20% in the US within this year.
