Trump rolls back his own tariffs to contain the rising cost of living
The measure primarily affects agricultural products that the United States either does not produce at all or produces in quantities far too small: coffee, tea, bananas, mangoes, avocados, spices and pine nuts. Some products more deeply rooted in domestic consumption—such as orange juice, bread or beef—also appear on the list, showing that the tariffs implemented in April were having a broader-than-expected impact on household grocery baskets.
These so-called “reciprocal” tariffs, set at a minimum of 10%, were initially intended to reduce the trade deficit and support U.S. production. Yet they applied even to goods physically impossible to grow on American soil—a choice heavily criticized by the opposition and several economic stakeholders. While the direct impact on prices remained limited, the persistent rise in the cost of living continues to burden households already strained by post–Covid-19 inflation. Coffee, for example, has seen its price jump by 19% in a single year.
Faced with this reality, the administration has multiplied its commercial concessions. Tariffs imposed on Switzerland have been significantly reduced, while several partial exemption agreements have been reached with Argentina, Ecuador, Guatemala and El Salvador. At the same time, the White House is highlighting other measures intended to ease household expenses: decreases in gasoline and egg prices, reductions in the cost of certain medications, and even a proposal to extend mortgage terms to 50 years to lower monthly payments—despite the higher total repayment amount.
This backtracking illustrates the tension between Donald Trump’s stated protectionist strategy and the real-world effects of these choices on consumers. With one year to go before the midterm elections and while 56% of Americans express dissatisfaction with his economic management, the administration is trying to rebalance its trade policy to ease pressure on purchasing power. The positive response from business circles suggests that this shift is seen as a sign of openness. The question now is whether these adjustments will be enough to regain household confidence and stabilize an economy still shaken by inflation.
