US scraps tariffs on some foods over inflation woes

In a significant policy shift, the US administration has announced the removal of tariffs on over 200 food products, including essential items like coffee, beef, bananas, and orange juice. This decision comes as American consumers grapple with escalating grocery prices, which have fueled widespread discontent. The move represents a notable departure from President Donald Trump’s earlier stance, where he maintained that the tariffs imposed earlier this year were not contributing to inflation. The executive order, released on Friday, modifies the scope of reciprocal tariffs initially announced on April 2 and took immediate effect. Duties already collected will be refunded. Trump, speaking aboard Air Force One, acknowledged that tariffs might ‘in some cases’ raise prices but reiterated his belief that the US has ‘virtually no inflation.’ He also revealed plans to distribute a $2,000 payment to lower- and middle-income citizens next year, funded by tariff revenues. The list of exempted products includes everyday staples that have seen double-digit price increases, such as oranges, cocoa, and fertilizers. Critics, including US Representative Don Beyer, argue that the administration is finally acknowledging the inflationary impact of its trade policies. Despite the tariff rollback, consumers remain frustrated by high grocery prices, which economists attribute partly to import duties. Richard Neal, the top Democrat on the House Ways and Means Committee, criticized the move as ‘putting out a fire that they started.’ The US Consumer Price Index for September 2025 showed a 3% year-over-year increase, with beef and coffee prices surging by 14.7% and 18.9%, respectively. While some industry groups have praised the exemptions, the broader economic implications of the tariff reversal remain a contentious issue.