Tariffs make life more expensive for Americans. Specifically, when it comes to shopping carts, contrary to what President Donald Trump has been saying for months, he was forced to announce this Friday that he was rescinding taxes on beef, coffee, tropical fruits, and other basic products in an effort to step up the fight against high consumer prices.
President Trump has focused his second term on imposing heavy tariffs on products imported into the United States in hopes of boosting domestic production and boosting the U.S. economy. But now, just a year before Democratic victories in New York, New Jersey and Virginia and midterm congressional elections, he recognizes that the policy is causing problems in Americans’ daily lives.
“We just lowered the tariffs a little bit on some foods, like coffee,” President Trump acknowledged on Air Force One this Friday, en route to Florida for a weekend of golf. Regarding whether he would further change tariffs, he said, “I don’t think it’s necessary.”
Asked whether his own tariffs were contributing to rising prices, President Trump acknowledged, “I would say that in some cases they do. But to a large extent, the tariffs are expected from other countries.”
Meanwhile, inflation is still rising to 3% since taking office in January, despite President Trump’s claims that inflation has been eliminated, further increasing pressure on U.S. consumers.
“President Trump is finally admitting what we’ve always known: His tariffs are driving up prices for Americans,” Rep. Don Beyer, D-Virginia, said in a statement. “The White House is trying to present the tariff cuts as a ‘tipping point towards affordability’ following recent election losses due to voter outrage over President Trump’s failure to deliver on his promise to curb inflation.”
Record-high beef prices have become a particular concern, with President Trump announcing a deal with Argentina to expand supplies after protests from U.S. producers.
President Trump will sign legislation this Friday eliminating tariffs on meat, tea, fruit juices, cocoa, spices, bananas, oranges, tomatoes, and certain fertilizers. Some of the products involved are not made in the United States, so the tariffs aimed at boosting domestic production had little effect. However, lower tariffs will likely result in lower prices for U.S. consumers.
The White House declared Friday that some of the tariffs President Trump imposed on nearly every country in the world months ago are no longer necessary given the trade deals he has struck with U.S. trading partners. The Associated Press reports.
In fact, Friday’s announcement comes after the Trump administration reached agreements with Ecuador, Guatemala, El Salvador, and Argentina to make it easier for U.S. companies to sell manufactured goods and agricultural products in those countries, as well as explore potential tariff reductions on agricultural products produced there.
$2,000 check
President Trump has promoted the idea that revenue from import tariffs could be the equivalent of a $2,000 check for Americans. The US president has indicated that these checks could be issued in 2026, but did not specify a date, saying only “at some point this year.” But President Trump has also said federal tariff revenue could be used to reduce the national debt, raising questions about the amount of federal funds needed for both purposes.
President Trump has rejected suggestions that trying to send direct payments to Americans could increase inflation, even though he has argued in the past that similar economic stimulus checks during the pandemic and by the previous administration did just that.
“This is money earned, not money invented,” Trump said. “Everyone except the rich will receive it. It’s not made-up money. It’s real money. It’s coming from other countries.” He noted that the checks won’t be distributed before Christmas and are expected to arrive next year.
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