Trump lowers tariffs on beef, coffee to reduce rising grocery prices

Donald Trump has reduced tariffs on beef, coffee and many common food items to help bring down rising grocery costs, marking a major shift in his tariff policy as Americans struggle with high prices

President Donald Trump on Friday ordered a major reduction in tariffs on beef, coffee, bananas, and several other agricultural and food items. The move marks a significant softening of his earlier “reciprocal tariffs” as the administration faces rising public concern over the cost of living.

 

Through a new executive order, Trump adjusted the reciprocal tariffs introduced in August, removing levies on more than a hundred commonly used food products such as fruits, nuts, and spices, The Wall Street Journal reported.

 

This reversal is another sign that the administration is moving away from its earlier hardline stance. When the tariffs were first announced in the spring, officials had insisted there would be no exceptions. Over time, however, exemptions were granted for items not produced in the US or not available in sufficient quantities.

 

 

What makes the latest cuts notable?

The latest exemptions go even further. Many of the products now freed from extra duties, including beef -- which has recently hit record prices -- are widely produced within the country. According to the executive order, these tariff cuts take effect retroactively from 12:01 am on Thursday, November 13.

 

The decision comes as the White House faces pressure over inflation and uncertainties raised during a recent Supreme Court hearing on the legality of the reciprocal tariffs. In response, the administration has begun reducing these duties while expanding other tariffs under Section 232 of the Trade Expansion Act of 1962, which targets sectors like steel, aluminium, and autos.

 

Trump’s move also follows internal disagreements among Republicans about how to respond to voter frustration after Democrats campaigned successfully on affordability issues in the November elections.   

 

How is the White House addressing food price pressures?

Trump has floated using tariff revenue to send $2,000 rebate cheques to Americans. He has also opened an antitrust investigation into major meatpacking firms he accuses of pushing beef prices higher.

 

Friday’s exemptions add to earlier carve-outs Trump announced on Thursday, which applied to food imports from Argentina, Ecuador, Guatemala, and El Salvador after they agreed to new trade frameworks with the US. The latest changes extend similar exemptions to all countries facing the reciprocal tariffs, not just those that reached deals.

 

What are critics saying?

Democrats and several economists said the decision shows Trump recognises that the tariffs have been raising prices for Americans, despite his repeated claims that foreign companies bear the cost. “By admitting that lowering tariffs will lower prices for US consumers, the Trump administration is acknowledging what economists have pointed out all along: tariffs raise prices,” said Erica York, Vice-President of federal tax policy at the Tax Foundation, as quoted by the report.