U.S. President Donald Trump has enacted an executive order that exempts various food products, including coffee, bananas, and beef, from existing tariffs. This decision comes amid increasing pressure on the administration regarding rising consumer prices. Although Trump had previously minimized concerns about the cost of living, he has shifted focus to this issue following disappointing election results for the Republican Party.
The executive order lists numerous products that are exempt from tariffs, including avocados, tomatoes, coconuts, and mangoes. The administration noted that these goods cannot be produced in sufficient quantities within the United States.
Trump has maintained that his tariffs, which currently start at 10% on imports from all countries, would not result in higher prices for consumers. He previously dismissed affordability concerns, labeling them as a construct of Democratic rhetoric. However, the introduction of these exemptions indicates a change in approach, as the administration aims to reduce prices by lessening tariffs on essential food items.
Economists have expressed that businesses may transfer the additional costs from tariffs onto consumers, thereby raising prices. While inflation has remained lower than anticipated in September, many items included in the Department of Labor’s inflation report showed price increases, with grocery prices rising by 2.7% compared to the previous year.
The new tariff exemptions for food products will be effective retroactively from midnight on November 13. Additionally, the Trump administration has announced plans to reduce import taxes on coffee and bananas in conjunction with trade agreements with four Latin American nations. Both Trump and Treasury Secretary Scott Bessent have committed to efforts aimed at lowering coffee prices, which have seen a 20% increase in the United States this year.
Source: https://www.bbc.com/news/articles/cdjr4xw83eko?at_medium=RSS&at_campaign=rss