Trump cuts tariffs in bid to slash consumer prices

President Donald Trump on Friday exempted key agricultural imports such as coffee, cocoa, bananas and some beef products from high tariff rates.

The move comes as Trump faces political backlash over high prices in US grocery stores. Some distributors of beef, coffee, chocolate and other common foods raised prices when Trump’s tariffs took effect this year, increasing the pressure on household budgets created by decades of high inflation in recent years.

Trump’s move on Friday also exempts several fruits, including tomatoes, avocados, coconuts, oranges and pineapples. In addition to coffee, tariff reductions also cover black and green tea and spices such as cinnamon and nutmeg.

The move marks a reversal for Trump, who has insisted that tariffs are necessary to protect U.S. businesses and workers. He argued that U.S. consumers would not ultimately pay for higher taxes.

Tariff exemption for beef comes months later The rising prices were due in part to Trump’s own tariff policy.

Last year, the United States imposed high customs duties. big suppliers Including Brazil, Australia, New Zealand and Uruguay. Brazil – the second largest country in the world beef producer – faced effective tariff rates exceeding 75 percent, resulting in reduced imports to the United States as the country’s cattle herd went into sharp decline. Near 75-year low.

Farm owners struggled rebuilding herds Amid drought, high feed costs and tariffs on fertilizer, steel and aluminum have made equipment and repairs more expensive.

The supply squeeze has led to a rise in grocery prices: Uncooked beef products rose 12% to 18% year-over-year in September, according to the Bureau of Labor Statistics’ latest consumer price index report.

Producers told CNBC earlier this month that policy coups, from tariff rate changes to the recent expansion of Argentina’s beef quota, have further chilled long-term investment, keeping supplies tight and confidence fragile.

Ground roasted coffee prices in the U.S. reached a record high of $8.41 per pound in July, up 33% from the previous year, according to the Bureau of Labor Statistics. data.

Trump’s 50% tariff on Brazilian coffee, which provides about a third of U.S. imports, has increased costs at roasters and retail chains. Vietnam, Colombia and other major exporters are also included in the administration’s broader food import tariff.

Roasters and cafes say they can’t get around these duties because the U.S. doesn’t produce any of these types of products. bean It consumes importers, exposing them to higher costs regardless of origin. Small independent stores are reporting an 18% to 25% increase in wholesale prices this year; many add surcharges because menu prices can’t keep up.

Retailers have warned that the impact could widen further if tariffs continue. The Tax Foundation’s forecast in August was: 74% of US food imports It was already facing tariffs on other products without a domestic supply chain, such as tea, spices and coffee.

Global coffee prices hanging It is close to the 50-year high reached in February.

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