Trump cuts tariffs on goods like coffee, bananas and beef in bid to slash consumer prices
News Summary
U.S. President Donald Trump on Friday exempted key agricultural imports such as coffee, cocoa, bananas, and certain beef products from higher tariff rates. This action marks a reversal for Trump, who had previously insisted tariffs were necessary to protect U.S. businesses and workers, contending that U.S. consumers would not ultimately bear the cost of higher duties. The move comes as Trump faces political blowback for high prices at U.S. grocery stores. The exemptions were announced just a day after Trump reached 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 list also specifically removes duties on products not sufficiently grown or produced in the U.S., like bananas and coffee. Consumer Price Index data showed food-at-home prices increased approximately 2.7% year-over-year in September. The article highlights specific impacts: beef prices rose 12% to 18% year-over-year in September, partly due to steep duties imposed on major suppliers like Brazil, Australia, New Zealand, and Uruguay. Coffee prices reached a record $8.41 per pound in July, a 33% increase from the prior year, driven in part by a 50% tariff on Brazilian coffee. Cocoa futures have also more than doubled pre-pandemic levels, following tariffs and crop failures.
Background
The Trump administration had previously imposed high tariffs on various agricultural imports, asserting that these duties were necessary to protect U.S. domestic businesses and workers. However, this policy, combined with global supply chain disruptions, inflation, and inherent supply shortages in certain commodities, led to significant increases in food prices for U.S. consumers. By September 2025, food-at-home prices in the U.S. had risen approximately 2.7% year-over-year, with specific commodities like beef and coffee seeing much larger increases of 12-18% and 21% respectively. Ranchers struggled to rebuild herds amidst drought, higher feed costs, and tariffs on related materials like fertilizer, steel, and aluminum. Coffee importers, lacking any domestic production of beans, were fully exposed to higher tariff costs with no alternative sourcing.
In-Depth AI Insights
What are the true political and economic motivations behind the Trump administration's sudden reversal on key agricultural tariffs, given his prior staunch pro-tariff stance? - Political Expediency Over Ideology: The Trump administration previously maintained that tariffs were paid by foreign exporters, not U.S. consumers. However, with