November 16, 2025
3 mins read

Trump’s Tariff U-Turn

The decision to exempt key food staples represents a clear retreat from Trump’s hardline tariff approach.

US President Donald Trump has approved a new executive order granting tariff exemptions to more than 100 food products — including coffee, bananas and several beef cuts — marking a notable shift in his trade policy as the White House faces mounting political pressure over rising consumer prices.

The move comes after weeks of criticism over the cost of living, an issue Trump had previously dismissed but has now begun to emphasise following the Republican Party’s disappointing performance in last week’s elections. The exemptions, announced on Friday, apply to food items that the US government says cannot be produced domestically in sufficient quantities, ranging from avocados and tomatoes to coconuts, mangoes and cocoa.

For years, Trump has argued that his tariff regime — which imposes a baseline 10% levy on all imports, with additional duties targeting specific countries — would not raise prices for American households. He has instead maintained that the measures are essential to reducing the US trade deficit and pushing consumers to “buy American.” He has repeatedly accused foreign nations of exploiting the US, calling them “cheaters” and insisting tariffs are needed to protect US industries.

However, rising grocery prices — especially the soaring cost of beef — have become a political liability. Last week, Trump openly demanded an investigation into the meatpacking industry, accusing major companies of “illicit collusion, price fixing and price manipulation.” The administration has simultaneously attempted to garner public support for tariffs by pledging $2,000 rebate cheques for American consumers, even as the Supreme Court considers whether Trump had the legal authority to issue the levies in the first place.

The decision to exempt key food staples represents a clear retreat from Trump’s hardline tariff approach. Speaking to reporters, Trump said the rollback applies to products not grown or produced in the US, arguing that removing tariffs on such items would not undermine American farmers or food manufacturers. He added that he does not expect additional policy reversals, stating: “I don’t think it’ll be necessary.”

According to BBC News, the administration believes the measure will ease pressure on household budgets, particularly by lowering the cost of imported coffee, which Trump said had become “a little bit high.” He predicted that prices would fall “to the low side” in a short period of time.

Economists have repeatedly warned that tariffs inevitably raise prices, as companies pass increased costs on to consumers. While US inflation remained milder than anticipated in September, government data shows grocery prices climbed 2.7% compared with the previous year, reflecting ongoing strain on household finances.

The White House confirmed that the tariff exemptions would take effect retroactively from midnight on 13 November. In a related move aimed at lowering grocery costs further, the administration said it would reduce import taxes on coffee and bananas as part of new trade arrangements with four Latin American nations. Trump and Treasury Secretary Scott Bessent have both pledged to cut US coffee prices by 20% this year.

Among the items exempted from tariffs are coffee, cocoa, tea, vanilla beans, a variety of beef products, and a wide range of fruits, spices, nuts, grains, roots and seeds — including avocados, pineapples, cardamom, cinnamon, cashews, macadamia nuts, taro and water chestnuts.

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