According to sources familiar with the matter, the exemptions would include several food categories such as beef and citrus fruits, and potentially extend to products like coffee, bananas, and vanilla beans, many of which are not grown in the U.S. in significant quantities. While the administration has yet to confirm the final scope of the proposal, the move reflects mounting pressure over inflation concerns, especially after recent off-year election losses for Republicans.
Exemptions Extend beyond Trade Partners amid Food Cost Concerns
According to officials briefed on the proposal, the exemptions would not be limited to countries with which the U.S. has active trade deals. This marks a significant departure from a previous executive order signed in September, which restricted tariff relief to imports from allied nations such as the European Union, Japan, and South Korea. The revised plan under consideration would apply to products originating from a broader set of nations, including those without formal agreements, if deemed necessary to lower domestic costs.
The tariffs in question stem from a set of reciprocal levies introduced in April as part of the administration’s efforts to secure better trade terms. Now, amid rising food inflation, key officials within the Department of Commerce and the U.S. Trade Representative’s Office have pushed for more flexibility. Howard Lutnick, the Commerce Secretary, is said to be advocating for these exemptions, citing their potential to reduce food prices, according to sources cited anonymously due to the sensitive nature of the decision-making process.
Data from government agencies shows that some food prices have surged notably over the past year. For example, coffee prices increased nearly 19% year-over-year in September, the most recent month with available statistics. Rising beef costs have also put pressure on household budgets, contributing to a broader decline in consumer confidence, which has hovered near record lows in recent months.
Internal Divisions over Domestic Impact and Trade Signals
While the move has support among economic advisors, it has sparked disagreement within the administration, particularly from agricultural stakeholders. American ranchers have voiced concerns that expanding beef imports, including a potential uptick in shipments from Argentina, would undercut domestic producers. These objections run counter to President Trump’s stated objective of strengthening U.S. industry, making the issue politically delicate.
“The Trump administration is committed to pursuing a nimble, nuanced, and multifaceted strategy on trade and tariffs.,” said Kush Desai, a White House spokesperson, in a general statement that did not address the tariff rollback directly. Meanwhile, Treasury Secretary Scott Bessent told Fox News that upcoming announcements would target “things we don’t grow here,” including tropical fruits and niche agricultural products. He added that the exemptions were expected to take effect “very quickly.”
On Thursday, the administration announced four new trade agreements with Argentina, Guatemala, El Salvador, and Ecuador. These deals open U.S. access to critical minerals, intellectual property provisions, and technology exports, while also reducing tariffs on certain agricultural imports. Despite these developments, countries like Canada and Mexico, which already benefit from exemptions under the USMCA, remain the dominant sources of many of the affected goods, limiting the potential domestic price impact.
Talks are reportedly ongoing with Switzerland, Taiwan, and India for future trade deals that may further influence the structure and reach of U.S. tariff policies. While the final outcome remains uncertain, officials say the administration now feels it has achieved a “critical mass” of agreements that allow for broader policy shifts. The proposed exemptions represent an attempt to balance the administration’s protectionist ethos with growing economic and electoral realities.
