Trump rolls back tariffs on beef, coffee, other foods

By Al Mayadeen English
Source: Agencies
Today 10:42

Trump ordered the rollback of tariffs on more than 200 food products, from coffee and beef to bananas and fertilizers, aiming to ease grocery inflation.

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Butcher Luckler Alcide cuts beef at Stew Leonard's grocery store in Norwalk, Connecticut, the United States, on July 23, 2025. (AP)

United States President Donald Trump ordered on Friday the removal of US tariffs on more than 200 food and agricultural products, including coffee, beef, bananas, orange juice, and a range of spices and inputs used in food production, in a bid to ease pressures on grocery prices and respond to mounting voter anger over household affordability.

The administration’s list covers over 200 items ranging from staples such as ground beef and coffee to products not grown or processed in the US, and includes certain chemicals and fertilizers used in food production. The White House said the exemptions reflect “significant progress the President has made in securing more reciprocal terms for our bilateral trade relationships.”

US officials announced framework trade deals with Argentina, Ecuador, Guatemala, and El Salvador that, once finalized, will eliminate tariffs on specified food imports from those countries. The administration said it is eyeing additional agreements before the end of the year.

Trump's justification and political context

Asked about the reversal aboard Air Force One, Trump conceded that tariffs “may in some cases” raise prices, while asserting that the country overall has “virtually no inflation.” He framed the move as targeted, saying the rollbacks apply to items not produced domestically and arguing that tariff revenues would allow a planned $2,000 payment to lower- and middle-income Americans next year.

The decision comes amid sustained public frustration over grocery bills and follows a series of state and local election setbacks in which affordability featured prominently as an issue. Critics, notably Democratic lawmakers, characterised the move as a partial retreat from the administration’s earlier high-tariff strategy and said it underscored that the tariffs had contributed to higher consumer prices.

Market and industry reaction

Major food-industry groups welcomed the exemptions, saying they should help lower prices for consumers and ease supply-chain pressures for manufacturers that rely on imported inputs. At the same time, some sectors expressed disappointment that their products were excluded from the list of exemptions.

Australia and other exporters immediately praised the move, with Australian officials and industry representatives highlighting the positive effect on beef exports to the US market. The change removes an obstacle that had weighed on exporters and could help restore normal trade flows for affected producers.

While US consumers may see lower prices for some items, they will also face higher prices next year, according to Reuters. Supply shortages, distribution costs, and lingering contractual arrangements can blunt near-term effects of Trump's policy change. Ground beef and steak, for example, had registered double-digit year-on-year price increases recently, and overall food-at-home costs remained elevated.