U.S. President Donald Trump has rolled back tariffs on more than 200 food products, including coffee, beef, bananas, and orange juice. The move aims to ease the burden on American consumers as grocery prices continue to rise.
The exemptions took effect retroactively at midnight on Thursday. This represents a major reversal for Trump, who previously maintained that tariffs were not contributing significantly to inflation.
“They may in some cases raise prices,” Trump said aboard Air Force One. “But overall, the U.S. has virtually no inflation.” The rollback follows growing public concern over affordability, highlighted in recent state and local elections in Virginia, New Jersey, and New York City.
Dividend Payment Using Tariff Revenue
Trump also announced plans to provide a $2,000 payment to lower- and middle-income Americans next year. The funds for this payment will come from tariffs collected on imported goods. “The tariffs allow us to give a dividend, and we’re also reducing debt,” he said.
Trade Deals And Exemptions
The White House confirmed that framework trade deals with Argentina, Ecuador, Guatemala, and El Salvador will remove certain food import tariffs. Officials are also negotiating additional agreements before the end of the year.
The food items affected by the rollback include staples like ground beef, oranges, tomatoes, cocoa, and various chemicals used in food production. Recent data shows beef prices were nearly 13% higher in September compared to last year, while steaks increased almost 17%. Banana prices were up about 7%, and tomato prices rose 1%.
Industry groups welcomed the rollback, saying it will help consumers and manufacturers. FMI-Food Industry Association president Leslie Sarasin stated that the move could make coffee and other products more affordable. However, some sectors expressed disappointment that their products were not included.
Trump said no further changes are currently planned. “We just did a little bit of a rollback,” he added. “Prices of coffee were high, now they’ll be lower soon.”
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The reduction in tariffs highlights the administration’s focus on improving consumer affordability and addressing concerns over rising food costs.
