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The Trump administration said Friday it will lift tariffs on a range of foreign goods — including beef, tomatoes, bananas and coffee — in a bid to ease consumer price pressures that have accelerated since the president’s global trade levies took effect.
The exemptions, effective immediately, apply to a set of “reciprocal” tariffs the administration imposed in April on exports from multiple nations. Officials said the decision reflects both progress in trade negotiations and growing concern over the cost of everyday goods.
Background: Trade deals and inflation worries collide
Administration officials said the rollbacks come after the United States secured new market-opening agreements with Switzerland, Argentina, El Salvador, Guatemala and Uruguay. The White House argued it had achieved a “critical mass” of trade wins using tariff threats as leverage.
But the step also follows mounting anxiety inside and outside the administration over persistent inflation and rising grocery bills — an issue central to President Donald Trump’s campaign promises to reduce food costs. Elevated prices have dented the president’s approval ratings, and affordability concerns helped fuel Democratic victories in state and local elections last week.
Officials had previously floated lifting tariffs on goods with little domestic production, such as coffee and bananas. But Friday’s list was broader than anticipated, extending to U.S.-produced items including bread, beef and orange juice.
Economic impact and competing explanations
Economists said the rollback underscored a point the administration has long resisted: tariffs tend to raise prices.
“Wait. If lowering tariffs lowers prices, what does raising tariffs do to prices?” Erica York, vice president at the Tax Foundation, wrote on social media, pointing to the group’s research estimating higher costs for consumers.
Food inflation has been shaped by multiple factors this year, including severe weather in key agricultural regions. But tariffs amplified price spikes for several goods, including coffee, which is up nearly 19 percent this year. Those increases were driven in part by a 50 percent levy on Brazilian imports and a 20 percent tariff on Vietnamese shipments, both major coffee exporters.
U.S. inflation has remained elevated and has ticked higher in recent months despite efforts by the Federal Reserve to slow it. The central bank has shifted emphasis toward protecting the labor market amid cooling job growth.
The administration has maintained that tariffs would spur domestic investment and job creation. Many economists disagree, arguing that tariffs raise input costs, slow growth and limit businesses’ ability to keep prices stable.
Government response and shifting economic indicators
Administration officials acknowledged privately that businesses have increasingly passed tariff-related costs on to consumers. After showing relative restraint last year, companies have raised prices more sharply in recent months, contributing to rising goods inflation.
Prices have increased faster for tariff-affected items than for those without levies, government data show.
Reactions from producers and industry groups
The exemptions risk angering some producers who have backed Trump’s tariff strategy. Cattle ranchers — a core part of the president’s political coalition — have warned that allowing more beef imports undercuts his “America First” message and threatens domestic markets.
Some agricultural groups say they received little warning before Friday’s announcement and fear sudden policy reversals could destabilize long-term planning.
Broader context: Tariffs and politics
Tariffs have been central to Trump’s economic platform since his first term, framed as leverage to extract concessions from trading partners and revive U.S. manufacturing. But the political landscape has shifted as voters confront rising grocery costs, tightening household budgets and uncertainty over the economic outlook.
Analysts say the move to relax levies suggests the White House is weighing the political risks of inflation more heavily as the 2026 midterms approach.
Next steps
Officials did not rule out further tariff adjustments, saying reviews would continue “sector by sector.” The administration is also expected to face pressure from congressional Republicans and domestic industry groups that support protectionist trade policies.
Economists will watch whether Friday’s exemptions meaningfully lower grocery prices — and whether the administration expands the rollback as inflation remains a top voter concern.
