WASHINGTON β President Donald Trump announced Friday that he will scrap U.S. tariffs on beef, coffee, tropical fruits and a broad swath of other commodities β a move that comes amid mounting pressure on his administration to better combat high consumer prices.
Trump built his second term around imposing steep levies on goods imported into the United States in hopes of encouraging domestic production and lifting the U.S. economy. His abrupt retreat from his signature tariff policy on so many staples key to the American diet is significant.
It came after voters in off-year elections this month cited economic concerns as their top issue, resulting in big wins for Democrats in Virginia, New Jersey and other key races around the country.
Inflation remains elevated, further increasing pressure on U.S. consumers. The Trump administration insisted its tariffs helped fill government coffers and weren't a major factor in higher prices at grocery stores around the country.
βWe just did a little bit of a rollback on some foods like coffee,β Trump said aboard Air Force One as he flew to Florida hours after the tariff announcement.
Pressed on his tariffs helping to increase consumer prices, Trump acknowledged, βI say they may, in some cases" have that effect. βBut to a large extent theyβve been borne by other countries,β he added.
Democrats were quick to paint Friday's move as an acknowledgement that Trump's policies hurt American pocketbooks.
"President Trump is finally admitting what we always knew: his tariffs are raising prices for the American people," Virginia Democratic Rep. Don Beyer said in a statement. "After getting drubbed in recent elections because of voters' fury that Trump has broken his promises to fix inflation, the White House is trying to cast this tariff retreat as a 'pivot to affordability.'"
Grocery bill worries
Trump slapped tariffs on most countries around the globe in April. He and his administration still say tariffs don't increase consumer prices, despite economic evidence to the contrary.
Record-high beef prices were a particular concern, and Trump said he intended to take action to try to lower them. Trump's tariffs on Brazil, a major beef exporter, was a factor.
Trump signed an executive order that also removes tariffs on tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes and certain fertilizers. Some of the products covered aren't produced in the U.S., meaning that tariffs meant to spur domestic production had little effect.
Reducing the tariffs likelyΒ will mean lower prices for U.S. consumers.
The Food Industry Association, which represents retailers, producers and a variety of related industry firms and services, applauded Trump's move to provide "swift tariff relief," noting that import U.S. taxes "are an important factor" in a "complex mix" of supply chain issues.
"President Trump's proclamation to reduce tariffs on a substantial volume of food imports is a critical step ensuring continued adequate supply at prices consumers can afford," the association said in a statement.
In explaining the tariff reductions, the White House said Friday that some of the original levies Trump relished imposing on nearly every country on earth months ago were actually no longer necessary given the trade agreements he'd since hammered out with key U.S. trading partners.
Indeed, Friday's announcement follows the Trump administration having reached framework agreements with Ecuador, Guatemala, El Salvador and Argentina meant to increase the ability of U.S. firms to sell industrial and agricultural products in these countries, while also potentially easing tariffs on agricultural products produced there.
During an interview that aired this week with Laura Ingraham of Fox News Channel, Trump hinted that lower tariffs might be coming.
"Coffee, we're going to lower some tariffs," the president said. "We're going to have some coffee come in."
Tariff checks?
Despite pulling back on so many tariffs, Trump used his comments aboard Air Force One on Friday night to repeat his past assertions that his administration would use revenue the federal government collected from import levies to fund $2,000 checks for many Americans.
The president suggested such checks could be issued in 2026, but was vague on timing, saying only βSometime during the year.β Trump, however, also said federal tariff revenue might be used to pay down national debt β raising questions about how much federal funding would be needed to do both.
Trump rejected suggestions that attempting direct payments to Americans could exacerbate inflation concerns β even as he suggested that similar checks offered during the coronavirus pandemic, and by previous administrations to stimulate the economy, had that very effect.
βThis is money earned as opposed to money that was made up,β Trump said. βEverybody but the rich will get this. Thatβs not made up. Thatβs real money. That comes from other countries.β
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