Involving over 200 types of goods, acknowledging that tariffs have pushed up prices, the United States has waived tariffs on some agricultural products

The US government, which has long ignored or even denied that tariffs will push up consumer prices, made a surprising policy shift last Friday. On the 14th local time, US President Trump signed an executive order to no longer impose so-called "equivalent tariffs" on some agricultural products starting from November 13th Eastern Time. Reuters reported on the 15th that more than 200 types of products have been adjusted, ranging from oranges, acai berries, chili powder to cocoa powder, food production chemicals, fertilizers, etc. Many categories have seen double-digit year-on-year price increases in the United States. The Financial Times commented that this move marks a significant rollback of the Trump administration's aggressive tariff policies and highlights that reducing tariffs may bring some relief to consumers, while increasing tariffs may lead to price increases.

It is reported that although the executive order was issued on the 14th local time, the exemption measures can be traced back to the 13th Eastern Time and apply to the so-called "equivalent tariffs" imposed by the US government on multiple countries around the world in April this year. The US government has stated that, given the significant progress it has made in trade negotiations, these tariffs are no longer necessary. But according to an analysis by The New York Times, the tariff exemptions are clearly also influenced by concerns about rising prices both inside and outside the White House. Despite Trump's promise to lower grocery prices, sustained high inflation has dragged down his approval rating, and concerns about the cost of living have helped the Democratic Party win in this month's local elections.

According to reports, White House officials have discussed plans to exempt countries that have signed trade agreements from tariffs on related products. However, the policy announced last Friday night expanded the exemption scope to all countries that have adopted so-called "equivalent tariffs", and the list of product exemptions has exceeded expectations. Analysts believe that the White House's move acknowledges the reality that tariffs have pushed up prices from the beginning. A few hours after the tariff announcement was released, when asked if tariff policies were fueling consumer prices, Trump admitted, "I think there may be such an impact in certain situations

According to the latest released Consumer Price Index for September, the price of ground beef in the United States has increased by nearly 13% year-on-year, and the price of steak has increased by nearly 17%. Both types of products have seen the largest increase in prices in over three years. In addition, banana prices have increased by about 7%, and tomato prices have increased by 1%. Overall, the cost of food consumed by American households increased by 2.7% year-on-year in September. The New York Times mentioned that this year, companies' hesitation to pass on costs has limited the impact of tariffs on commodity prices, but in recent months, more costs have been passed on to consumers. Commodity inflation is on the rise, and the price increase of taxable goods is significantly higher than that of duty-free goods.

In addition to price pressures, The Wall Street Journal reported that in the November local elections, Democrats heavily defeated Republican candidates with the slogan of "affordability". Afterwards, the US government and the Republican Party criticized each other for several days on how to respond to voters' dissatisfaction with the cost of living, and it was in this context that Trump made the decision to exempt imported food tariffs.

According to the Financial Times, as Trump exempts tariffs, multiple polling data show that his support for economic issues is low. According to Realclearpolitcs.com, a US polling website, 56% of the public do not approve of the president's governance performance on economic issues.

It is worth noting that all so-called "equivalent tariffs" imposed by the US government on foreign countries are currently under review by the US Supreme Court. The government is waiting for the court to rule on whether Trump exceeded his authority by imposing taxes and revoking tariffs.

According to the Financial Times, the largest business lobbying group in the United States, the American Chamber of Commerce, welcomed the White House's tariff adjustment and called for more similar actions. In a statement, Neil Bradley, Chief Policy Officer of the American Chamber of Commerce, said, "We encourage the government to build on the measures announced today to provide additional tariff reductions for other products that are difficult to obtain domestically, and to take action in areas where tariffs threaten American employment

Democrats believe that the US government's measures to exempt some agricultural tariffs are not enough to compensate for the damage caused by its trade policies. Virginia Democratic Congressman Don Byer said, "Trump has finally acknowledged what we already knew: tariffs are causing the American people to bear higher prices. Although this move may alleviate some of the cost increases caused by the government, it cannot prevent more serious problems such as rising inflation, volatile business environment, and economic damage caused by the crazy tariff plan