Trump Administration Partially Reverses food tariffs Amid Rising Grocery Costs
WASHINGTON – The Trump administration announced thursday it will roll back tariffs on dozens of food products, a move signaling a shift in strategy as rising grocery prices become a political issue for the former president.The exemptions, effective retroactively to midnight on November 13th, aim to lower costs for US consumers.
The decision comes as President Trump has faced scrutiny over the increasing price of groceries, particularly beef. While initially advocating for tariffs as a means to reduce the US trade deficit and encourage domestic purchasing – arguing the US had been “exploited by ‘cheaters’ and ‘pillaged’ by foreigners” – the administration is now taking steps to alleviate the financial burden on shoppers.
Trump previously dismissed concerns about affordability, labeling it a “new word” and a “con job” by Democrats. Though, he recently called for an investigation into the meat-packing industry, accusing companies of ”Illicit collusion, Price Fixing, and Price Manipulation.” He also proposed issuing $2,000 tariff rebate cheques to americans, though the legality of this plan is currently being reviewed by the Supreme Court.
The latest exemptions focus on products not made in the US, according to Trump, “so there’s no protection of our industries, or our food products.” He stated Friday he doesn’t anticipate further rollbacks being necessary, citing an example of coffee prices expected to fall “on the low side in a very short period of time.”
Beyond the broad tariff rollback, the administration is also lowering import taxes on coffee and bananas as part of new trade deals with four Latin american countries. Treasury Secretary Scott Bessent and Trump have both pledged to decrease coffee prices in the US by 20% this year.
Economists have long warned that tariffs woudl likely be passed on to consumers through higher prices. Despite overall inflation remaining relatively mild in September, the Department of Labor reported a 2.7% increase in grocery prices compared to the previous year.
