Trump reverses tariffs on dozens of food products as 'affordability crisis' engulfs US economy

In a major turn of events, US President
Donald Trump signed an executive order allowing a range of food products, including coffee, bananas and beef, to escape the
sweeping tariffs he introduced earlier this year. The move came as his administration faces mounting pressure over rising prices.

While Trump previously downplayed what many have been calling an “
affordability crisis”, he started to focus on the issue ever since his Republican Party lost polls in several states in last week’s elections. On Friday, White House shared a list of dozens of products exempted from tariffs, which included avocados, tomatoes, coconuts and mangoes.

In the announcement, the Trump administration argued that these goods are exempted because they cannot be produced in sufficient quantities domestically. Trump has long argued that his tariffs would not lead to a major
increase in prices for US consumers. He also argued the affordability crisis was a “new word” and a “con job” by Democrats.

Why the reversal matters

The latest exemption signalled that the Trump administration seeks to lower prices by walking back levies on some food staples. Ever since Trump introduced the tariffs, economists have warned that companies would pass the
cost of tariffs onto their customers in the form of higher prices.

While
inflation in the United States remained milder than many analysts had expected in September, most items tracked in the Department of Labour inflation report showed price increases, with groceries up 2.7 per cent from last year.

According to the White House statement, the Trump administration’s new tariff exemptions for food products would take effect retroactively at midnight on Thursday, 13 November. In another move to address concerns among consumers about grocery prices, the Trump administration said import taxes on coffee and bananas will be lowered as part of trade deals with four
Latin American countries.

The announcement came just days after both Trump and Treasury Secretary Scott Bessent vowed to lower coffee prices, which have jumped about 20 per cent in the US this year.