In mid-November 2025, President Trump announced the rollback of a broad set of import duties on food and agricultural products. Trump rolled back tariffs on more than 200 food products—including staples like coffee, beef, bananas, and orange juice. A White House order exempted categories of foods that “cannot be grown or processed in the United States”.
The exemptions covered a wide range of consumer staples: for example, tariffs were lifted on coffee (unroasted beans), bananas, orange juice, spices, and tropical fruits like avocados and pineapples. Other goods on the list included tea, fruit juices, nuts (e.g., cashews), cocoa, certain fertilisers, and even communion wafers. These tariff cuts took effect retroactively (from Nov 14, 2025) and marked a dramatic reversal of the sweeping trade duties Trump had imposed earlier in 2025.
Why did Trump reverse these tariffs?
The move was driven by rising food prices and mounting political pressure. By late 2025, American grocery costs had become a key public concern. The Trump administration was “feeling the heat from Americans worried about inflation”, and voters’ concern over high costs fuelled recent Democratic victories in state elections. U.S. food-at-home inflation had been stubbornly high (around 2.7% year-on-year in September 2025, a two-year high), squeezing low- and middle-income households. Trump’s own advisers and business leaders (e.g., fast-food executives) warned that certain tariffs were contributing to price hikes on groceries. In public remarks, Trump conceded that tariffs “may in some cases” raise prices.
Several factors reinforced this decision, particularly domestic political setbacks and the midterm calendar. After Republicans suffered losses in recent local elections, blamed partly on living‐cost concerns, the administration sought relief measures. Economists pointed out that Trump’s newly imposed 10% base tariff on nearly all imports (plus extra duties on specific goods) was beginning to feed through into consumer prices. Officials also hinted that business lobbying played a role: food-industry groups publicly welcomed “swift tariff relief,” noting that import taxes were “an important factor” in higher grocery bills. In effect, Trump’s tariff U-turn was a response to the political need to lower consumer costs and shore up support in battleground states, as well as a recognition (admitted explicitly in mid-November) that “the tariffs allow us to give a dividend” to consumers.
Who Gains From the Tariff Rollback?
Key exporters of the exempted foods stand to benefit. Latin American nations dominate many of these markets. For instance, banana suppliers like Guatemala (40% of U.S. imports), Ecuador (16%), and Costa Rica (16%) will gain from the tariff cut. A Reuters report confirms that the U.S. agreed to remove reciprocal duties on Ecuadorian bananas (and coffee) under a new trade framework.
Coffee exporters are similarly affected. Brazil, Vietnam and Colombia are among the largest suppliers of coffee beans to the United States, which had imposed tariffs of 50%, 20%, and 10%on their coffee, respectively. Trump’s announcement effectively removes these levies. Moreover, Vietnam and the U.S. announced a trade deal that is expected to exclude coffee from its 20% tariffs, and Ecuador and the US reached a Framework Agreement on Reciprocal Trade that removes tariffs on Ecuadorian coffee.
Other tropical fruit exporters like Peru and Mexico will also see gains. Peru applauded exemptions for avocados, mangoes, coffee, and cacao that now make its exports more competitive. Brazilian agriculture officials even noted that U.S. tariffs on Brazilian orange juice (about $1.2 billion in annual exports) were eliminated, boosting Brazil’s citrus industry.
Conversely, countries whose goods were not covered by the exemptions see no change or may experience a relative disadvantage. And U.S. producers of the now-cheaper imports (mostly goods not grown domestically) may see renewed foreign competition. In summary, major banana-producing Central American and South American countries, as well as top coffee- and spice-producing nations, are the principal beneficiaries of Trump’s rollback.
What is the impact on global food prices and supply chains?
Lowering U.S. tariffs on food imports is expected to reduce some domestic price pressures, but the global impact is mixed.
On the one hand, cheaper U.S. import costs will likely pull down retail prices for the affected items. Industry analysts note that U.S. coffee prices, which hit record highs in September (about $9.14/lb, more than double 2019 levels), eased immediately after Trump signalled tariff cuts.
Nasdaq reports show Arabica coffee futures falling after tariff-relief news. Banana prices in the U.S. have also surged (up ~7–9% year-on-year), and removing the ~15% import duty on Latin American bananas should help moderate those gains. By contrast, FAO data indicate that global staple prices (grains, sugar, etc.) have been easing due to strong supply, so the tariff rollbacks mainly target higher-value items (coffee, fruits, spices) that had driven up the global food import bill by ~34.5% in 2025.
What political and economic motivations underlie the move?
The tariff rollback is as much a political manoeuvre as an economic one.
Politically, the Trump administration has framed it as “fighting inflation”, a major voter concern. The timing—just after off-year elections where Democrats won on an “inflation” theme—suggests the White House is seeking to regain momentum by lowering living costs. Trump himself linked the exemptions to fulfilling campaign promises on affordability.
Economically, the move is pitched as part of a “reciprocal trade” strategy: in return for cutting U.S. duties on certain imports, the administration is negotiating broader trade deals to open foreign markets to U.S. exports. For example, the framework deals with Argentina, Ecuador, Guatemala and El Salvador will maintain some base tariffs but eliminate U.S. tariffs on items that those countries export (like Ecuadorian bananas and coffee). Trump has emphasised that these tariffs were being kept only on goods unavailable domestically, framing the exemptions as a smart, targeted adjustment.
Part of the calculus is also economic signalling.
By offering tariff relief, Trump can claim he is lowering costs and even propose using tariff revenues to fund rebates (e.g. a proposed $2,000 “tariff dividend” to middle-class Americans). It also shores up relationships with key allies.
Latin American leaders were quick to applaud the move: for instance, Ecuador’s government highlighted that 15 of its products (cacao, coffee, fruits) now benefit, and Peru’s exporters noted it “reinforces reciprocity” to boost jobs. Republicans hope the relief helps their image with cost-sensitive voters, while economists observe that it lets the administration claim progress on inflation without altering tax or spending policies.
Ultimately, the tariff reversal allows the administration to argue that it is tackling inflation, supporting U.S. consumers, and strengthening trade ties, all without altering tax or spending policy.