President Donald Trump on Friday issued an executive order eliminating reciprocal tariffs on hundreds of food products, citing progress made on new trade agreements.
Tariffs were removed from more than 200 individual items, including coffee and tea; tropical fruits and juices; cocoa and spices; bananas, oranges and tomatoes; and beef. The rollbacks also included the elimination of tariffs on certain food-industry inputs, such as fertilizer.
In a statement, the White House said the tariff cuts reflect new agreements reached with several countries in the wake of the initial April 2 tariff announcements, which imposed sweeping tariffs on products from dozens of countries. Some of the tariffs, which include a 10% levy on almost all imported products and much higher tariffs on some countries, had previously been adjusted in September.
“President Trump has now determined that it is necessary and appropriate to further modify the scope of the reciprocal tariffs,” the White House said. “Specifically, certain qualifying agricultural products will no longer be subject to those tariffs, such as certain food not grown in the United States.”
The tariffs are paid by importers of these products and are often passed on to consumers either in part or in full.
Exemptions meant to ease inflation
The new exemptions come as food inflation has remained elevated, particularly for some items not grown in the U.S., such as coffee and cocoa. Prices for those products have been impacted by weather-driven disruptions in markets around the world.
The September Consumer Price Index found that grocery prices were up 2.7% compared with a year ago, including double-digit increases for coffee and beef. Beef prices have remained elevated as ranchers have culled their herds due to drought and the high cost of feed, according to reports.
Data from research firm Numerator estimated that prices for everyday goods, including groceries, were up by a similar amount, 2.68%, in October, compared with a year ago.
The removal of the tariffs also follows Democratic messaging around the high cost of living, which many observers credited with helping candidates from that party win several state and local elections earlier this month.
Trump also said he plans to issue $2,000 “dividend” payments to low- and middle-income Americans next year, using funds generated from the tariffs, according to reports.
FMI supports tariff cuts
FMI—The Food Industry Association supported Trump’s executive order eliminating tariffs on imported foods and other industry inputs.
“FMI is grateful and extremely pleased at President Trump’s actions to cut tariffs on a wide swath of food and agriculture products,” said Leslie Sarasin, president and CEO of FMI, adding that the action should benefit both consumers and food manufacturers in the U.S.
“Many factors impact the price of food on grocery store shelves, including weather and crop yields, energy and transportation costs, packaging and labor, among many others,” she said. “Tariffs are an important factor in this complex mix of supply chain effects.”
The tariff cuts were retroactive to midnight on Nov. 13.
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