Trump drops tariffs on dozens of food items, from beef to bananas
By: Courtenay Brown , Ben Berkowitz (AXIOS)
Trump is sending a signal that there's a recession on the horizon.
S E E D E D C O N T E N T
President Trump on Friday night issued an executive order dropping reciprocal tariffs on dozens of food items, including drinks, spices, fruits and meat.
Why it matters: The growing affordability crisis has become a political liability for the administration. Cutting tariffs is at least one way to potentially make groceries cheaper.
Driving the news: The White House issued a statement Friday evening saying a list of foods would no longer be subject to the sweeping tariffs implemented earlier this year:
- Coffee and tea;
- Tropical fruits and fruit juices;
- Cocoa and spices;
- Bananas, oranges, and tomatoes;
- Beef
The intrigue : The order marks the most significant backtracking of the administration's trade policy yet.
- It suggests officials are concerned about the cost-related impacts from tariffs, even as Trump's top economic and trade deputies insisted the levies would not hike costs.
- Inflation data has been delayed because of the government shutdown, but the latest release from September shows an aggregate index for grocery costs rising at the quickest annual pace since 2023.
- Prices have jumped for items that the U.S. import from foreign nations, including coffee.
What they're saying : Trump decided to modify tariffs on a slew of food items after considering "current domestic demand for certain products and current domestic capacity to producer certain products," according to the text of the executive order.
- That comes just hours after Trump doubled down on his public argument that the affordability crisis is not getting worse — contradicting government data.
- "[C]osts under the TRUMP ADMINISTRATION are tumbling down, helped greatly by gasoline and ENERGY," Trump wrote, in part, on Truth Social earlier on Friday. "We are the Party of Affordability!"
Trade groups were quick to praise the decision.
- "The makers of America's favorite brands make up the largest U.S. manufacturing sector by employment and source 90 percent of ingredients and inputs from American farms and suppliers. But some products — like coffee, cocoa, spices, tropical fruit, and more — are simply unavailable in the U.S.," the Consumer Brands Association said in a statement.
- "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. Tariffs are an important factor in this complex mix of supply chain effects," food industry association FMI said.
Yes, but: Some groups that were left out of the exemptions immediately protested.
- "Not including EU and UK spirits on the list of tariff modifications is yet another blow to the U.S. hospitality industry just as the critical holiday season kicks into high gear," Distilled Spirits Council CEO Chris Swonger said in a statement.
The bottom line : Even if the White House's move to exempt a slew of grocery items from tariffs does not totally heal spiking prices, it suggests officials are trying to ease some pain as consumer sentiment hovers near the lowest level on record.
Editor's note: This story has been updated with industry comments.
Be a good human. Grossly derogatory comments, blatantly inflammatory comments, excessive trolling, mean-spirited taunting and insults, scamming, spamming, and off topic comments may be removed in compliance with the site's Terms of Service and the Code of Conduct. The moderators have the final word.
These import dependent businesses have been passing tariffs on to consumers. But there's no guarantee they'll pass on any savings. If consumers don't see any price relief from this stunt then the threat of recession can only increase.
Everything depends upon this Christmas season. If the shoppers don't shop then a recession is almost guaranteed. Trump withholding economic data means we're flying blind, too. Those economic wild-assed-guesses are going to become even wilder. Buckle up, folks, we may be in for a wild ride.
Gee, why would he need to do this? He said tariffs are paid by other countries and also we are supposedly making trillions of dollars off of these tariffs and the government is supposed to be sending us all checks.
Is that all not true?
I heard a couple talking about those checks earlier this weekend. They already have plans for their 4 grand (they're sure they're getting 2K apiece).
Trump and his GOP are making the 'case' for wealth redistribution. We should remember this when those same propagandists complain when the opposition does it. What is good for the goose, is good for the gander too!
Glenn Youngkin already sent out rebate checks to Virginians. $200 each, right as early voting started. Brazen attempt at buying votes.
The 'house' that politicians play in is really, really, 'circular' - so much so that it is evident that politicians spin around with themselves!
Buying votes. . . another propaganda tactic that republicans 'forget' to complain about when they steadily accuse liberals of the same (though it is not the same at all).
Morning..well time to throw another Aussie steak on the Barbie over there..
See Trump dropped the tariffs on beef...I think he realised the price of a Macca's burger might go up and that would be detrimental...he seems to do a lot of back "flipping" these days..
“ backflipping”. . .
Hence the use of #TACO !!!
This time it is not "TACO" (Trump Always Chickens Out) per se, this is a tactic meant to affect the democratic party's tactic of invoking a lack of "affordability" heading into the mid-terms. In that sense, Trump is 'wise' to listen to his advisors and back off!
If Trump can so readily remove a tariff on one product or several (coffee/tea/iron/wood/orange juice/bananas/fruit) then this "tariff starter" can remove them all. . .and end the wealth redistribution (proposition) —a cheat talking point-which the GOP 'used' to pretend to hate so much. That is, until it becomes politically expedient to do wealth redistribution. MAGA supporters OUGHT to be be 'pissed' at the thought. I, for one, wonder if they are pissed and more!