Washington DC: US President Donald Trump on Friday reversed tariffs on more than 200 essential food products, including coffee, beef, bananas and orange juice, as Americans continue to voice frustration over soaring grocery costs. The decision marks a sharp shift from Trump’s earlier position that the sweeping duties imposed this year were not responsible for price hikes.
The tariff exemptions, which became effective retroactively at midnight on Thursday, acknowledge for the first time that import duties may be contributing to inflation. “They may in some cases” raise prices, Trump admitted when questioned aboard Air Force One, although he maintained that the US faces “virtually no inflation.”
The rollback comes after Democrats secured victories in recent elections across Virginia, New Jersey and New York City, where high food prices and affordability dominated voter concerns.
During the same interaction with reporters, Trump said he plans to introduce a $2,000 direct payment to lower- and middle-income Americans next year, funded through tariff revenues. He said the government would use duties to provide “a dividend” while also reducing national debt.
The White House announced on Thursday that framework trade deals with Argentina, Ecuador, Guatemala and El Salvador would eventually eliminate tariffs on selected food items and imports. More agreements are expected before the end of the year.
Friday’s exemption list includes over 200 products commonly purchased by US households, many of which have seen double-digit inflation. Items such as oranges, cocoa, spices, chemicals used in food production, fertilizers and even communion wafers are now exempt. The administration said exemptions were granted for items not grown or processed in the US and after significant progress in multiple trade negotiations.
Beef prices, based on September data, were nearly 13% higher than last year, while steak prices surged almost 17% amid a long-running cattle shortage. Banana prices rose around 7%, and overall grocery costs were up 2.7% in September.
Industry groups widely welcomed the exemptions. Leslie Sarasin, president of the FMI-Food Industry Association, said the move should bring relief to consumers and manufacturers. However, the spirits industry expressed disappointment over the lack of tariff relief for EU and UK products such as Scotch, Cognac and Irish whiskey. Distilled Spirits Council president Chris Swonger said the omission was “another blow” to the US hospitality sector ahead of the holiday season.
Asked about future rollbacks, Trump said no additional changes were planned. “We just did a little bit of a rollback,” he said. “The prices of coffee were a little bit high, now they’ll be on the low side in a very short period.”
Trump has increasingly emphasized affordability in recent weeks, blaming high prices on policies of former President Joe Biden rather than his own tariffs. Economists, however, say import duties have contributed significantly to rising grocery bills and could push prices even higher next year.
Congressman Richard Neal, the top Democrat on the House Ways and Means Committee, criticised the administration’s shift, saying Trump was now “putting out a fire that they started.” He added that the trade war had fuelled inflation and strained the manufacturing sector for months.
