**Trump Exempts Key Food Imports from Tariffs to Ease Grocery Prices**
President Donald Trump on Friday announced exemptions on higher tariffs for key agricultural imports, including coffee, cocoa, bananas, and certain beef products. The move comes amid mounting political pressure over rising U.S. grocery store prices.
Many distributors of staples like beef, coffee, chocolate, and other common food items have raised prices as tariffs imposed earlier this year took hold, compounding the strain on household budgets already impacted by decades-high inflation.
**A Wide Range of Exemptions**
Trump’s action also exempts a broad array of fruits—such as tomatoes, avocados, coconuts, oranges, and pineapples. In addition to coffee, the tariff reductions extend to black and green tea, as well as spices like cinnamon and nutmeg.
This marks a significant reversal for Trump, who has consistently argued that tariffs are necessary to protect U.S. businesses and workers. He has contended that U.S. consumers would not feel the brunt of higher duties—an assertion increasingly challenged by rising grocery bills.
**New Trade Agreements and Specific Exemptions**
The exemptions were announced just a day after Trump reached new trade framework agreements with four Latin American countries, including 10% tariffs on most goods from Argentina, Guatemala, and El Salvador, and 15% from Ecuador. The latest move removes duties specifically on products not grown or produced in the U.S. in sufficient quantities, such as bananas and coffee.
**Rising Food Costs Remain a Pressure Point**
U.S. households have faced stubbornly high food prices for several years. According to the latest available Consumer Price Index data, food-at-home prices rose approximately 2.7% year-over-year in September. (More recent data was delayed due to the government shutdown.)
The tariff exemptions aim to moderate some of these grocery price increases, though experts caution that other factors—such as global supply shortages—also drive up prices, especially for commodities like coffee and beef.
**Industry Reactions: Beef, Coffee, and Cocoa**
The beef industry has been particularly affected by tariffs over the past year. The U.S. imposed steep duties on major suppliers, including Brazil, Australia, New Zealand, and Uruguay. Brazil, the world’s second-largest beef producer, faced effective tariff rates topping 75%, sharply reducing imports to the U.S.
These reduced imports have coincided with U.S. cattle herds hitting a near 75-year low, as ranchers struggle to rebuild amid drought, higher feed costs, and tariffs on fertilizer, steel, and aluminum—all of which have increased the cost of production. As a result, uncooked beef products rose 12% to 18% year-over-year in September, according to the Bureau of Labor Statistics.
Producers have warned that frequent policy changes—from fluctuating tariff rates to the recent expansion of Argentina’s beef quota—have discouraged long-term investment, keeping supplies tight and market sentiment fragile.
**Coffee Prices Hit Record Highs**
U.S. ground roast coffee prices reached $8.41 per pound in July—a record high and a 33% increase from the previous year, according to Bureau of Labor Statistics data. Trump’s 50% tariff on Brazilian coffee—accounting for roughly a third of U.S. imports—drove up costs throughout the supply chain.
Major exporters like Vietnam and Colombia were also affected by the food tariffs. With no domestic coffee production, U.S. roasters and cafés have had no choice but to pay higher import costs, regardless of the beans’ origin.
The September CPI report found that coffee prices climbed nearly 21% in August from the prior year, marking the largest jump since the 1990s. Retailers warned the impact could have spread further if tariffs remained in place.
**Broader Impacts on Imports**
According to the Tax Foundation, 74% of U.S. food imports faced tariffs as of August, including tea, spices, and other products with little or no U.S. supply chain. Many of these items were included in Trump’s list of exemptions on Friday.
Global coffee prices remain near a 50-year high, underlining the ongoing pressure on both importers and consumers.
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*The latest move by the Trump administration is intended to alleviate some of the pressure on grocery prices, but observers note that market conditions and supply chain disruptions will continue to influence what Americans pay at the store.*
https://bitcoinethereumnews.com/finance/trump-cuts-tariffs-in-bid-to-slash-consumer-prices/