In a surprising departure from his overall tariff aggressiveness, on Thursday, Donald Trump sounded the retreat on one of his biggest tariffs. He touted that prices for products are falling during his presidency. The former president made this declaration via Truth Social, claiming, “costs under the TRUMP ADMINISTRATION are tumbling down.” And look at this! He just unveiled a new trade pact! This bipartisan agreement is intended to lower or eliminate tariffs on foods and other imports from dozens of other countries.
In exchange, Trump agrees to reduce U.S. tariffs on imports from Switzerland from 39% to 15%. Further, he promises to lift tariffs on specific food items coming from Argentina, Ecuador, Guatemala, and El Salvador. The executive order zeroes in on food products like beef, tomatoes, coffee, and bananas. These amendments are expected to begin retroactively at midnight on Thursday.
During an interview with CBS’s 60 Minutes, Trump insisted, “We have no inflation. Biden had inflation, and he didn’t have tariffs.” Our data indicates that consumers are tired of grocery prices remaining unaffordably high. Economists say that Trump’s previous, misguided tariff policies have exacerbated the problem. A recent Harris poll for the Guardian found a more troubling trend. At a time when a clear majority of Americans were experiencing rising monthly costs in the range of $100 to $749.
“This is odd given that Trump has insisted for years that his tariffs are not adding to inflationary pressures. Since implementing these tariffs, inflation has increased and manufacturing has contracted month after month,” stated Richard Neal, a prominent figure in economic discussions. He criticized the Trump administration’s recent announcements as “putting out a fire that they started and claiming it as progress.”
The White House has backed Trump’s tariff modifications, stating that it is “necessary and appropriate to further modify the scope of the reciprocal tariffs.” This response is intended to help support the case being made that these kinds of changes will make the US economy and our national security stronger.