The exceptions to the punitive tariffs apply, among other things, to products that are hardly or only grown to a small extent in the United States. The list also includes foods such as tea, avocados and spices. According to the decree, the new exceptions apply retroactively from Thursday.
Trump imposed so-called reciprocal tariffs of at least 10 percent on most products imported into the United States in April to reduce the country’s trade deficit and support local production. However, these tariffs also affected goods that do not grow on US soil.
The government is now under pressure because many voters are struggling with the rising cost of living. The price of coffee rose by around 20 percent in August and September. The reason for this is not just the tariffs, climate change is also ensuring that consumers around the world have to pay more for coffee.
The industry association NCA welcomed the customs exemptions that have now been issued by decree. The elimination will mean cost-of-living savings for two-thirds of adult Americans “who rely on coffee every day,” said association President Bill Murray.
The government had previously announced that it would help citizens in view of the increased cost of living. “We will sort this out immediately,” Trump economic adviser Kevin Hassett said this week.
Trump also won the presidential election last year because he promised an improvement in purchasing power. Even if the increase in inflation was less than expected given Trump’s tariff policy, dissatisfaction among the population is apparently increasing. Republicans recently suffered bitter defeats in regional elections. The Democrats focused on the increased cost of living in these elections.
In order to lower the prices of products such as coffee, cocoa and bananas, the US government is also relying on trade agreements with several Latin American countries. The US agreed to special agreements with Argentina, Guatemala, Ecuador and El Salvador, the White House announced on Thursday. The countries have agreed to open their markets to US products. In return, the US granted tariff relief for some goods.
Since taking office in January, Trump has imposed tariffs on almost all US trading partners and later reversed decisions or introduced exceptions on several occasions. Many countries began negotiations with the USA and accepted tariff rates that were lower than those threatened, but significantly higher than before.
