U.S. President Donald Trump has rolled back tariffs on more than 200 food products, including staples like coffee, beef, bananas, and orange juice. The move comes as Americans grow increasingly frustrated with high grocery prices.
The exemptions took effect retroactively at midnight Thursday.
They mark a major reversal for Trump, who has previously insisted that his sweeping import tariffs are not driving inflation.
“They may in some cases raise prices,” Trump said aboard Air Force One on Friday, referring to his own tariffs. He maintained, however, that overall U.S. inflation remains “virtually no inflation.”
The rollback affects over 200 items, ranging from oranges, acai berries, and paprika to cocoa, fertilisers, and even communion wafers. The White House explained that the exemptions target products not grown or processed in the United States.
Trump also said he plans to use tariff revenue to issue a $2,000 payment to lower- and middle-income Americans next year. “The tariffs allow us to give a dividend if we want to do that. Now we’re going to do a dividend and reduce debt,” he added.
The Trump administration has finalised trade framework deals with Argentina, Ecuador, Guatemala, and El Salvador. Officials are pursuing additional agreements before the end of the year to remove tariffs on certain imports.
Food prices have been rising sharply. Ground beef costs nearly 13% more than last year, while steak prices rose 17%, the largest increase in over three years. Banana prices climbed 7%, and tomatoes rose by 1%. Overall, home food costs were up 2.7% in September.
Industry reactions were mixed. Leslie Sarasin, president of the Food Industry Association, said the rollback “should help consumers, whose morning cup of coffee will hopefully become more affordable.” Chris Swonger, president of the Distilled Spirits Council, criticized the exclusion of spirits like Scotch, Cognac, and Irish whiskey.
Trump signaled no further changes are planned, calling the rollback “a little adjustment” that should quickly lower coffee prices.
The administration has faced pressure as Americans continue to grapple with affordability concerns and inflation, which some economists attribute partly to tariffs.
Democrats, including House Ways and Means Committee Chair Richard Neal, have criticized the move.
Neal called it “putting out a fire that they started,” claiming that Trump’s trade war has increased costs and slowed manufacturing growth.
As the U.S. heads into the holiday season, the tariff rollback is expected to ease some pressure on consumers, though debates over trade policy and inflation effects are likely to continue.