Post by : Badri Ariffin

In a significant shift on Friday, President Donald Trump signed an executive order exempting over 100 food products from his sweeping import tariffs, a move aimed at lowering grocery prices that have become a growing concern for American consumers.

The exemptions cover everyday staples including coffee, bananas, avocados, beef cuts, and a wide range of fruits, nuts, spices, and grains. White House officials explained that these items cannot be produced in sufficient quantities in the United States, making the rollback a necessary adjustment to protect consumers from price spikes.

Trump’s tariffs, which impose a baseline 10% on imports from all countries and additional levies on many trading partners, have been part of his effort to reduce the US trade deficit. However, rising food costs and public criticism have made the issue politically sensitive, especially following the Republican Party's underwhelming performance in last week’s elections.

The president highlighted coffee as an example, saying prices had been high but would now decrease “in a very short period of time.” The exemptions, effective retroactively from November 13, also include cocoa, teas, vanilla beans, various spices such as cinnamon and turmeric, and nuts like cashews, macadamias, and Brazil nuts.

In addition to the executive order, the administration announced that trade deals with four Latin American countries would lower import taxes on coffee and bananas, further aiming to ease the burden on US shoppers.

Despite the rollback, Trump emphasized that these changes are limited to products not produced domestically, suggesting broader tariff policies would remain in place. Economists have long warned that tariffs often lead companies to pass costs onto consumers, and the recent rise in grocery prices—including a 2.7% increase in food year-on-year—underscores these concerns.

#Business News #Economic