President Trump announces new tariff exemptions
President Donald Trump announced new exemptions from tariff signatures in a new executive order this week. President Trump claims this will lead to lower food prices for Americans.
Fox – 4 News
The Trump administration’s recent exemptions from tariffs on some foods may signal progress in making groceries more affordable, but experts say consumers shouldn’t expect big price cuts heading into the holiday season.
The White House announced on November 14 that President Donald Trump signed an executive order exempting certain agricultural products from the tariffs imposed on April 2. The administration framed the move as part of a broader response to Americans’ continued frustration with a lack of affordability.
Phil Kafalakis, CEO of IFMA The Food Away From Home Association, said this was a “step in the right direction” but warned that consumers should not expect in-store prices to fall anytime soon.
“The products here will continue to be expensive and it will take time for the supply chain to work out,” Kafalakis said. “Consumers won’t feel it right away.”
What items are exempt from customs duty?
A wide range of agricultural products will be exempt from the April 2 tariffs, from coffee and tea to fertilizer. The list also includes tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, and beef.
Prices of some items selected for exemption have skyrocketed over the past year. The price of ground coffee, produced primarily in Brazil and Vietnam, rose 41.3% from a year ago, according to the latest data from the Bureau of Labor Statistics. Steak prices rose by 12.7%, ground beef by 11.5%, and bananas by 8.6%.
Katie Thomas, who heads the Carney Consumer Research Institute, an in-house think tank for a global management consulting firm, said the move shows the Trump administration recognizes what the United States can produce domestically.
“The initial stance was just broad tariffs, and then there were exemptions from the beginning,” Thomas said. “So they seem to continue to value things that are really meaningful.”
Will prices go down?
Thomas said importers and retailers are likely to pass on at least some of the savings from not paying customs duties, which should ultimately lower consumer prices for affected items.
These tariff exemptions also stabilize prices that would otherwise have risen, but consumers may not see any actual price reductions, he said.
Kafalakis said that while tariffs appear to be driving some prices higher, other factors such as labor shortages, extreme weather and reduced herd size are also contributing to higher prices.
“It’s not just that bananas aren’t available in Florida; weather patterns in South America and other parts of the world are causing problems,” Kafalakis said. “(There’s) a naturally organic component, and there’s another variable that complicates growing and harvesting food.”
When will the price drop?
If importers pass on some of the savings to consumers, it will take time for shoppers to notice the lower prices.
Thomas said prices for high-selling products could fall faster than products with longer shelf lives, such as coffee. If brands try to act quickly, consumers could see lower prices for produce and other popular items by the end of the year, but other prices won’t drop until the first three to six months of 2026, he estimates.
Drew DeLong, head of Kearney’s Geopolitical Dynamics practice, said the impact of the exemption on prices will vary by product, given their “incredibly complex” supply chains.
“How much (of the savings) can businesses actually pass on? It’s not the same calculation every time,” DeLong said.
President Trump aims to return to affordability
President Trump has insisted in recent months that his administration has brought down prices to some extent and curbed inflation. “It won’t happen overnight, but there is evidence that the trend is in the right direction,” the White House said on November 14.
But Americans still feel trapped.
“You can’t convince people that prices are going down when you literally go to the store and see prices aren’t going down. Like, where are you shopping?” Kafalakis said. “What you just said by saying you would eliminate tariffs is that there is a hole in your strategic thinking, at least when it comes to food.”
During last year’s campaign, Trump repeatedly promised to lower the cost of groceries, saying in August before the election that he would lower prices “from day one.” More than a year later, inflation still persists. Compared to last year, overall food prices have increased by 3.1%, and household food costs have increased by 2.7%, according to the BLS.
Trump’s promise that prices would drop overnight was unrealistic, Thomas said. But the pledge has raised consumer expectations and they are now demanding action to reduce costs, he said.
“All of this is just noise to many consumers who had no idea what tariffs were in the first place,” Thomas said. “What really matters is the price you see on the shelf.”
Contact Rachel Barber at rbarber@usatoday.com and follow her at X @rachelbarber_
