In a significant policy shift, former President Donald Trump has moved to slash tariffs on a range of essential food imports, a decision that directly contradicts his long-standing defence of his aggressive trade strategy.
A Surprising Reversal on Trade Policy
The change was enacted through an executive order signed on Friday, which grants exemptions for items including beef, tomatoes, coffee, and bananas. These new measures are applied retroactively, taking effect from midnight on Thursday.
This move represents a stark reversal for Trump, who has repeatedly insisted that the import duties he implemented were not responsible for fuelling inflation. The decision follows a series of electoral victories for Democrats in state and local elections in Virginia, New Jersey, and New York City, where the soaring cost of living was a central issue for voters.
Contradictory Claims and Political Fallout
Just hours before the order was issued, Trump had claimed on his Truth Social platform that “costs under the TRUMP ADMINISTRATION are tumbling down.” This sentiment echoed his comments earlier this month to CBS’s 60 Minutes, where he stated, “We have no inflation. We have no inflation. Biden had inflation, and he didn’t have tariffs.”
However, the White House factsheet justified the action by saying Trump was “strengthening the US economy and national security by modifying the scope of the reciprocal tariffs.” It cited “substantial progress in reciprocal trade negotiations” as the reason for the change.
The policy shift did not go unnoticed by political opponents. Top Democrat on the House Ways and Means Committee, Richard Neal, accused the administration of “putting out a fire that they started and claiming it as progress.” He added, “Since implementing these tariffs, inflation has increased and manufacturing has contracted month after month.”
The Broader Trade Landscape and Consumer Impact
This executive action follows the announcement of a deal to reduce US tariffs on Switzerland from 39% to 15%. It also comes alongside new framework trade deals with Argentina, Ecuador, Guatemala, and El Salvador that will eliminate tariffs on certain foods once finalised.
Economists have pointed to import tariffs as a key driver of high grocery prices, a major point of frustration for American consumers. A recent Harris poll conducted for The Guardian revealed that a clear majority of Americans have seen their monthly costs rise by between $100 and $749.
With companies expected to begin passing on the full cost of import duties next year, the Trump administration appears to be taking pre-emptive action to mitigate further price hikes, even as it publicly attributes inflation solely to the policies of his predecessor, Joe Biden.
