In signing the resolution, President Donald Trump has sent a strong signal that he will act decisively to relieve financial pressure on the American consumer. He signed an executive order that retroactively reduces tariffs on certain agricultural imports. This order, backdated to Thursday, applies particularly to speciality crops not typically cultivated in the U.S. It covers imports such as coffee, beef, tomatoes, and bananas.
The executive order aims to provide that relief. Coffee consumers in September said that they were paying about 20% more for coffee than they were a year earlier. High tariffs on Brazilian coffee, the U.S.’s largest supplier, have been a major factor in this spike. Since August, these tariffs have climbed to a punitive 50%. The order does not cover Mexican tomatoes, which will remain subject to a 17% tariff. Summer 2019 also saw higher tariffs imposed on these tomatoes, which took effect during the busy summer months.
More broadly, the Trump administration’s choice is a response to the continued pressure of affordability—increasingly in the face of an adverse economic climate. Voters made clear their frustrations with the economy in exit polls earlier this month, a wakeup call indicating that the time for half measures is over. The executive order takes bold action to address these concerns head on. It targets products that are critical to consumers but that we do not manufacture here at home.
Furthermore, the executive order is just one part of a larger trade initiative which was announced on the same day. The US and Switzerland recently kicked off an exciting new trade initiative! The purpose of this agreement is to decrease tariffs on Swiss goods from 39% to 15%. This reduction represents a historic shift. Until recently, the U.S. was one of the highest rates if not the highest applied by any developed country to its trading partners. The original trade agreement, which controlled the flow of trade and investment between the two countries for almost thirty years, expired last July.
The executive order excludes from its scope goods with existing “reciprocal” tariff rates. These rates differ widely, from as low as 10% to as high as 50%. The clever castling consolidates the administration’s domestic industrial policy with addressing the impacts of inflation on consumers.
As this administration continues to face these economic challenges, it will continue to stay focused on rigorous enforcement of policies that benefit American consumers. Reducing tariffs on certain agricultural imports to help keep down the price in volatile markets. It’s true that pursuing new trade agreements makes these essential goods less accessible to consumers.