President Donald Trump has ordered a significant rollback of Trump food tariffs on more than 200 imported food items, in a move billed as an effort to ease rising US grocery prices and calm voter anger over the cost of living.
Tariff cuts target coffee, beef and bananas as prices climb
The executive order, signed on Friday, removes or reduces import tariffs on a wide range of agricultural products, including coffee, beef, tomatoes, bananas, tropical fruit, tea, cocoa, fruit juices, spices and some fertilisers.
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Many of these products, such as coffee and tropical fruit, are not grown in large quantities in the United States. Retailers had argued that the original reciprocal tariffs, introduced earlier this year, did little to boost domestic production but added costs along food supply chains.
The tariff exemptions cover 237 product classifications, according to a customs notice and government fact sheet. Coffee, tea, bananas, oranges, beef and various fruit juices are among the key lines now excluded from the previous 10–15 per cent duties on many agricultural imports.
US food prices have been a central political concern. Headline inflation has moderated to around 3 per cent annually, but some grocery categories remain sharply higher than a year ago.
Coffee prices in US stores were up about 19 per cent in the 12 months to September, while bananas rose about 7 per cent, according to official data cited by the administration’s critics.
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By GlobalDataFor supermarket chains and food manufacturers, the rollback of US food tariffs could ease some input costs over the coming months, especially for coffee, beef and imported fresh produce.
However, any impact on retail prices will depend on how quickly wholesalers and retailers pass on lower landed costs, and on broader factors such as freight rates, labour costs and currency movements.
Political backlash over cost of living forces policy rethink
The decision marks a notable shift for the White House, which had repeatedly insisted that Trump tariffs were largely paid by foreign exporters and US retailers rather than consumers, and that any impact on food inflation was minimal.
Public opinion polling has told a different story. Surveys cited by US media show nearly two-thirds of voters disapprove of the president’s tariff policy, with frustration over rising food prices featuring prominently in recent state election campaigns.
Democratic gains in Virginia and New Jersey have been linked, in part, to concerns over affordability.
Within Congress, disquiet over Trump food tariffs has grown. Several Republican senators joined Democrats in symbolic votes challenging the administration’s expansive use of emergency powers to impose duties on a wide range of imports.
The stakes are heightened by a case before the US Supreme Court, which is reviewing the president’s use of a 1977 emergency powers law to justify a broad package of reciprocal tariffs, including those aimed at curbing illicit fentanyl shipments and raising duties on multiple trading partners.
If the court restricts that authority, the government could be ordered to refund part of the roughly $90 billion collected under these tariffs and may have to search for alternative legal tools to maintain its high-tariff trade strategy.
At the same time, Washington has been rolling out a series of “framework” trade deals with partners including the United Kingdom, European Union, Japan, South Korea, Vietnam and several Latin American countries.
These agreements are designed to open foreign markets to US exports while leaving in place many of the tariffs on imports that underpin the administration’s broader trade agenda.
Implications for food retailers and supply chains worldwide
For the global retail sector, the Trump food tariff rollback introduces both opportunities and new uncertainties.
US importers of coffee, beef, fruit and processed foods should see immediate relief on the tariff line of their landed-cost calculations. For major grocery groups, foodservice operators and private-label manufacturers, lower US import tariffs could:
- create scope to renegotiate prices with existing suppliers of exempted products
- accelerate sourcing shifts towards countries now benefiting from improved access to the US market
- strengthen demand for premium and speciality items that had become less competitive under higher tariffs
Exporters in Latin America, Africa, Asia and Oceania may seek to increase shipments of coffee, beef, bananas, citrus fruit and juice concentrates into the United States as price points improve relative to domestic alternatives.
The move has already been welcomed by some producers, including beef exporters in Australia and Latin American coffee sectors that had lobbied against the duties.
European and UK retailers, many of which operate international sourcing hubs that serve both Atlantic markets, will be watching closely. Lower US food tariffs can alter global trade flows for key commodities, reshaping availability and pricing in other regions.
If more product is drawn into the American market, buyers elsewhere could eventually face tighter supply or firmer prices, even as US consumers see some relief at the checkout.
For multinational brands, contract manufacturers and large supermarket groups, the policy shift underlines three strategic considerations:
- Volatile trade rules as a structural risk – The rapid introduction and partial reversal of US food tariffs within a single year demonstrates how quickly trade costs can change. Retailers relying on long-term supply contracts may need more flexible pricing clauses and more active hedging strategies.
- Need for diversified sourcing – The focus of the latest exemptions on tropical products and protein highlights the vulnerability of narrow, country-specific sourcing for categories such as coffee, beef and fresh fruit. Building alternative supply routes and multi-origin blends may help retailers smooth future swings in tariff policy or climate-related crop disruptions.
- Consumer expectations on pricing – Even if the tariff rollback reduces wholesale costs, retailers face pressure over how much of any saving is passed on to shoppers, and how fast. In an environment where food inflation has become a political issue, price transparency, clear communication and careful margin management will be critical.
The administration has floated the idea of a $2,000 “tariff dividend” payment for many Americans, funded by revenue from the duties, but no detailed proposal has yet emerged and congressional support appears limited.
For now, the immediate focus for the global retail sector is on what the change in US food tariffs means for procurement plans heading into 2026.
US grocery prices are unlikely to fall overnight. Yet the rollback of tariffs on coffee, beef, bananas and other everyday items signals a rare softening in Washington’s recent trade stance – and a reminder that political pressure over food inflation can still reshape global supply chains.
