White House Removes Tariffs on Over 200 Food Products to Ease Cost-of-Living Concerns
The White House has removed tariffs on more than 200 food products, including coffee, spices, and bananas, as part of a political concession aimed at addressing cost-of-living concerns ahead of upcoming elections. The Food Marketing Institute (FMI) described the move as a critical step toward improving food affordability.
Despite this change, some tariffs remain in place; notable exclusions include items such as wine, cheese, and palm oil. Additionally, aluminum tariffs on cans have not been lifted. Imports account for less than 20% of US food and beverage purchases, and exemptions under the US-Mexico-Canada Agreement have already spared many imports from Mexico.
Economists caution that the relief from tariff removal may be modest. A projection by Yale Budget Lab suggested tariffs could raise food prices by about 1.9% in the short term. Historically, US grocery prices increased by approximately 2% annually between 2013 and 2021, with a 12-month increase of 2.7% as of September.
Tufts University economist Sean Cash noted that the average grocery price is unlikely to decrease significantly due to these tariff changes. However, Anthony Serafino, president of EXP Group, expects price drops in the coming weeks as tariff cost pass-through slows down, acknowledging that timing may vary because of stock turnover.
Administration officials have emphasized that any price relief is not guaranteed and that the effects may be limited according to current market dynamics.
