In a significant move addressing rising consumer prices, US President Donald Trump signed an executive order on Friday that eliminates reciprocal tariffs on a wide range of agricultural commodities and food items.
What the Executive Order Changes
The order removes the so-called "reciprocal" tariff rates that typically range from 10 percent to as high as 50 percent on numerous imported goods. However, the order does not provide complete tariff exemption for these products, according to CNN reports.
Among the affected commodities are beef, coffee, tropical fruits, tomatoes, and bananas - many of which have seen substantial price increases since Trump assumed office. The price hikes resulted partly from previously imposed tariffs and insufficient domestic production to meet demand.
Specific Impacts and Exceptions
Despite the broader tariff relief, some specific products will continue facing import duties. For instance, tomatoes from Mexico, a major supplier to the American market, will maintain their 17 percent tariff rate. This rate became effective in July following the expiration of a nearly three-decade-old trade agreement between the two nations.
The implementation of these tomato tariffs in July led to almost immediate price increases for consumers, highlighting how tariff policies directly affect retail costs.
Political and Economic Context
The decision comes amid growing political pressure following recent off-year elections where voters identified economic concerns as their top priority. The elections resulted in significant Democratic victories in Virginia and New Jersey races.
Exit polls conducted earlier this month revealed widespread voter frustration with the current economic situation, prompting the administration to take action on price concerns.
Trump's executive order follows the announcement of framework agreements with Argentina, Ecuador, El Salvador, and Guatemala designed to reduce import levies on agricultural products from these nations.
In previewing the executive order, Treasury Secretary Scott Bessent explained that the measures specifically target goods "we don't grow here in the United States", explicitly mentioning coffee and bananas. While coffee cultivation occurs in some limited US regions, the vast majority is imported to meet consumer demand.
In a related development on Friday, the Trump administration and Swiss government announced a new trade framework that reduces tariffs on Swiss goods from 39% to 15%. Switzerland previously faced among the highest tariff rates of all US trading partners.
