Trump’s trade war backfires: The reason why the U.S. president is retreating on tariffs

Americans gave the Republican party a drubbing in this month’s elections, with voters saying in exit polls that one of their biggest concerns was a lack of affordability. This was an issue that had swept GOP candidates and Donald Trump to victory just last year.

However, while Trump promised to bring down prices on “Day One,” he has failed to follow through, and has actually made the situation worse with his signature tariff policy. Seeing the writing on the wall, he is now scraping some of those to help bring down the cost of groceries that have been affected.

Trump admits his tariffs caused price increases

Speaking to reporters on Air Force One on his way to Florida after signing an executive order rescinding certain tariffs on household staples, Trump admitted that his tariffs “may, in some cases” have caused prices to rise. He again though reiterated that the costs from them “to a large extent… [have] been borne by other countries,” which isn’t how import taxes work.

Which products is Trump removing tariffs?

Trump’s executive order removing tariffs focus mainly on products that cannot be produced in the United States.

One of these is coffee, of which 99% that is consumed in the nation is imported. Coffee has seen prices jump 19% over the past year.

Likewise, he rolled back import levies on bananas, the US imports nearly 100% of its total supply. The price of bananas is up 7% year-on-year.

Other commodities that will get a break from tariffs include cocoa, oranges, fruit juice, tea, tomatoes, spices, and certain fertilizers, reports the Associated Press.

In a bid to help bring down record-high beef prices, imports into the US will receive a tax break too. One of the reasons for the price surge were 50% tariffs slapped on imports from Brazil, a major beef exporter.

The move by Trump was applauded by the Food Industry Association. “President Trump’s proclamation to reduce tariffs on a substantial volume of food imports is a critical step ensuring continued adequate supply at prices consumers can afford,” it said in a statement.

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