U.S. President Donald Trump speaks on the day he is scheduled to sign the Executive Order on “Developing the Future” in the East Room of the White House in Washington, DC, on November 13, 2025.
Jonathan Ernst | Reuters
President Donald Trump on Friday exempted major agricultural imports, including coffee, cocoa, bananas and certain beef products, from higher tariffs.
The move comes as President Trump faces political backlash over high prices at U.S. grocery stores. Some distributors of beef, coffee, chocolate and other common groceries are raising prices after President Trump’s tariffs went into effect this year, adding to the pressure on household budgets from decades of high inflation in recent years.
President Trump’s action on Friday also exempts a variety of fruits, including tomatoes, avocados, coconuts, oranges and pineapples. In addition to coffee, the tariff reduction also extends to black and green tea and spices such as cinnamon and nutmeg.
The move marks a reversal for President Trump, who has argued that tariffs are necessary to protect American businesses and workers. He argued that U.S. consumers ultimately aren’t willing to pay the hefty tariffs.
beef
The beef tariff exemption comes after months of rising prices, due in part to President Trump’s own tariff policies.
Over the past year, the United States has imposed steep tariffs on major supplier countries including Brazil, Australia, New Zealand and Uruguay. Brazil, the world’s second-largest beef producer, faces an effective tariff rate of more than 75% and is reducing imports to the United States as its domestic cattle herd reaches its lowest level in 75 years.
Ranchers are struggling to rebuild their herds as droughts, rising feed costs and tariffs on fertilizer, steel and aluminum drive up equipment and repair costs.
Tight supplies are fueling price increases at grocery stores, with raw beef products rising 12% to 18% in September compared to the same month a year ago, according to the Bureau of Labor Statistics’ latest Consumer Price Index report.
Producers told CNBC earlier this month that policy whiplash, from tariff changes to Argentina’s recent beef quota expansion, has further dampened long-term investment, leaving supplies tight and sentiment fragile.
coffee
The price of freshly ground coffee in the U.S. reached $8.41 per pound in July, a record high and a 33% increase from a year ago, according to data from the Bureau of Labor Statistics.
President Trump’s 50% tariff on Brazilian coffee, which supplies about a third of U.S. imports, has raised costs across roasting and retail chains. Vietnam, Colombia and other major exporting countries are also included in the administration’s expansive food import tariff schedule.
Roasters and cafes say they have no way to avoid the tariffs because they don’t produce any of the beans for U.S. consumption, leaving importers exposed to higher costs regardless of origin. Small mom-and-pop shops have reported wholesale prices rising 18 to 25 percent this year, and many are adding additional fees because they can’t keep up with the prices on their menus.
Retailers have warned that the impact could have been even greater had the tariffs continued. The U.S. Taxation Foundation estimated in August that 74% of U.S. food imports face tariffs, with duties already imposed on tea, spices and other products that, like coffee, do not have domestic supply chains.
Global coffee prices are hovering around the 50-year high hit in February.
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