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| Increased tariffs on Mexican tomatoes took effect over the summer. |
On Friday, President Donald Trump signed an executive order that retroactively reduces tariffs on beef, tomatoes, coffee, bananas, and several other agricultural imports, with the changes taking effect starting Thursday.
The order removes these products from the “reciprocal” tariff category, which normally ranges from 10% up to 50%. However, the items are not completely exempt from all tariffs.
For example, tomatoes imported from Mexico — one of America’s largest sources — will still carry a 17% tariff. That rate has been in place since July, following the expiration of a trade agreement that had lasted nearly thirty years. Tomato prices rose almost immediately after the new tariffs were introduced.
Many of the products now excluded from “reciprocal” tariffs have experienced some of the biggest price spikes since Trump entered office, driven partly by the tariffs he implemented and limited domestic production.
Brazil, the largest exporter of coffee to the U.S., has been subject to a 50% tariff since August. As a result, coffee prices for consumers were nearly 20% higher in September year-over-year, according to the Consumer Price Index.
This decision follows voter dissatisfaction with the economy, reflected in exit polls earlier this month, where Democrats performed strongly in off-year elections across several states.
When discussing the upcoming executive order earlier this week, Treasury Secretary Scott Bessent said it focuses on products “we don’t grow here in the United States,” pointing to coffee and bananas. (While coffee is cultivated in a few regions, most of it is imported.)
Also on Friday, the Trump administration and Switzerland unveiled a new trade framework that reduces U.S. tariffs on Swiss goods to 15% from the previous rate of 39%, one of the highest tariff levels applied to any U.S. trading partner.
