U.S. President Donald Trump has signed an executive order allowing a range of food products, including coffee, bananas, and beef, to escape his sweeping tariffs.
This move comes as his administration faces mounting pressure over rising prices. While Trump previously downplayed concerns about the cost of living, he has focused on the issue since his Republican Party's poor performance in last week's elections.
The dozens of products included on the White House's list of exemptions range from avocados and tomatoes to coconuts and mangoes.
These goods, the Trump administration said on Friday, cannot be produced in sufficient quantities domestically.
Trump has long asserted that his tariffs - currently a baseline 10% on imports from all countries, with additional levies on many trading partners - would not lead to increased prices for U.S. consumers. He also stated affordability was a new word and a con job by Democrats.
He has argued the taxes are necessary to reduce the U.S. trade deficit - the gap between the value of goods it buys from other countries and those it sells to them. Trump asserts the U.S. has been exploited by cheaters and pillaged by foreigners, adding that higher levies would encourage American consumers to buy domestic goods instead.
However, rising grocery costs and the soaring price of beef have become a political issue for Trump. Last week, he called for an investigation into the meat-packing industry, accusing companies of illicit collusion, price fixing, and price manipulation.
He has aimed to rally support for the taxes, offering $2,000 tariff rebate cheques to Americans - even as the U.S. Supreme Court weighs whether Trump had the legal authority to implement them.
The latest exemptions, however, signal a reversal by the Trump administration, as the White House seeks to lower prices by rolling back levies on some food staples.
Trump mentioned the decision will affect products not produced in the U.S., stressing that there's no protection of our industries, or our food products.
He added that he doesn't anticipate the need for further policy rollbacks in the future, stating, I don't think it'll be necessary.
We just did a little bit of a rollback on some foods, like coffee, where prices were a bit high. Now they should be on the low side in a very short period of time, he explained.
Economists have warned that companies might pass the cost of tariffs onto their customers through higher prices.
While inflation has remained milder than many analysts expected in September, the Department of Labor's inflation report indicated price increases for most items tracked, with grocery prices up 2.7% from last year.
The Trump administration's new tariff exemptions for food products will take effect retroactively at midnight on Thursday, November 13, as stated by the White House.
In further efforts to alleviate consumer concerns around grocery prices, the administration announced reduced import taxes on coffee and bananas as part of trade agreements with four Latin American countries.
This week, Trump and Treasury Secretary Scott Bessent both pledged to reduce coffee prices by 20% in the U.S. this year.
