An executive order was issued by President Donald Trump that retrospectively decreases duties on a variety of agricultural products, including cattle, tomatoes, coffee, and bananas. The action went into effect on Thursday. Goods are exempt from “reciprocal” tariff rates, which can range anywhere from 10% to as high as 50%, according to the order that was signed by President Trump. However, the directive does not completely free the items from tariffs in any way, shape, or form. To give just one example, tomatoes from Mexico, which are a big supplier to the United States, will continue to be subject to a duty of 16 percent.
Following the expiration of a trade agreement that had been in effect for almost thirty years, the rate was put into effect in the month of July. Almost soon after the installation of those taxes, there was a significant increase in the price of tomatoes. A number of commodities that will no longer be subject to “reciprocal” tariffs have witnessed some of the most substantial price spikes since Trump took office. This is partially due to the tariffs that he implemented as well as an inadequate domestic supply.
Since August, the United States has imposed tariffs of fifty percent on Brazil, which is the country that supplies the most coffee to the United States. According to the data, the cost of coffee for customers increased by almost twenty percent in September when compared to the same month in the previous year. In the course of exit polls that were carried out earlier this month, voters expressed their dissatisfaction with the current status of the economy, which led to support for Democrats in elections that took place outside of the year in a number of states. This decision was made as a result of these indicators.
In preparation for the executive order that will be issued on Friday, Treasury Secretary Scott Bessent made a statement earlier this week stating that the measures would target crops that “we don’t grow here in the United States,” specifically referencing bananas and coffee inside his statement. The majority of the country’s coffee is imported, despite the fact that some areas of the country are dedicated to the cultivation of coffee. On Friday, the Trump administration, in collaboration with the Swiss government, presented a new trade framework with the objective of lowering tariffs on Swiss goods from 39% to 15%. This rate was previously among the highest in the United States’ commercial agreements with Switzerland.