Mumbai: In a surprising policy pivot amid surging food prices, U.S. President Donald Trump has slashed tariffs on more than 200 essential imports, including coffee, beef, bananas, and orange juice, effective from midnight Thursday.
This retreat from his signature protectionist stance comes as inflation bites into American households, forcing a rethink on trade barriers that once promised economic revival.
Trump now concedes that a “little bit of a reversal” is warranted, despite his long insistence that his tariffs shielded jobs without fuelling price hikes. Blaming lingering Biden-era policies for the woes, he highlighted exemptions for goods not domestically produced, sealed through fresh framework deals with Argentina, Ecuador, Guatemala, and El Salvador — potentially paving the way for more pacts this year. He added that the tariff windfall could fund $2,000 dividends for citizens next year, reduce the national debt, and alleviate the burden of everyday costs.
The move aims to address immediate issues: the price of beef increased by 13% in September, that of steaks by 17%, that of bananas by 7%, that of tomatoes by 1%, and the overall price of groceries by 2.7%. Despite America’s beef prowess, cattle shortages have kept supplies tight. Notably, European and British alcohol imports remain tariffed, a blow to the hospitality sector.
Industry voices hailed the relief. “This will aid consumers and bolster producers,” affirmed Leslie Sarasin, president of the FMI-Food Industry Association. Yet Democrats in Congress decried it as theatrical damage control, arguing Trump’s tariffs initially jacked up prices and throttled output.
As winter shopping looms, this tariff trim signals a pragmatic truce in the trade wars, offering modest respite — but at what cost to long-term strategy?