Donald Trump steps down. Under pressure to lower the cost of living for Americans, the President of the United States on Friday, November 14 canceled the import duties he himself imposed on everyday products, such as coffee, avocados or imported beef. “I have determined that certain agricultural products may not be subject to reciprocal import duties” took effect in April, the Republican leader explained in a decree published on the White House website.
The list includes products that are not grown in the United States, or in quantities that are too small compared to the need: coffee, tea, avocados, tomatoes, mangoes, bananas, spices, pine nuts… But there are also cuts of beef, while prices for this meat are reaching record levels domestically.
Therefore, the executive seems to realize that their protectionist policies, which they have always praised, are casting too wide a net. In recent days, it has also announced bilateral agreements to reduce pressure on certain trading partners, such as Switzerland, which will reduce large surcharges on its products (by 39%).
Tense economic context
In April, Donald Trump implemented so-called import duties “opposite” at least 10% on most products entering the United States to reduce the country’s trade deficit and support local production. These taxes even cover foodstuffs that cannot be grown on American soil, an element often derided by the opposition.
Even though these import duties have a smaller impact than feared on the prices consumers have to pay, these regulations are not neutral for the American people who are affected by very high post-Covid-19 inflation. Prices are currently rising less rapidly, but they are still increasing, and consumers are being impacted by prices of certain common foodstuffs such as coffee (+19% year-on-year in September).
Donald Trump was re-elected by ensuring that he would increase the purchasing power of the American people. Since then, he has continued to emphasize that the economy is growing and inflation is almost under control. However, official figures report a slowdown in activity and an acceleration in inflation (to +3% in September versus +2.3% in April, according to the CPI index).
$2,000 for every American
His own camp is pushing him to react after major setbacks in local elections, and the midterm elections are just over a year away. The White House this week wanted to highlight steps taken to lower prices of basic necessities such as gasoline and eggs, as well as the announcement of an agreement aimed at lowering the price of certain weight-loss drugs.
Donald Trump also recently proposed allowing home loans to be taken out for a term of fifty years, instead of the current maximum term of thirty years, to reduce the payments due each month, even if this means significantly increasing the interest rates paid to banks. He also suggested paying 2,000 dollars (or 1,720.13 euros) to each American, financed by revenue from import duties that are still in the process of being reduced.
Donald Trump’s policy change regarding import duties targeting coffee was welcomed on Friday by the association representing the sector in the United States (NCA), which considered this to be normal. “will reduce cost of living pressures for the two-thirds of American adults who drink coffee every day”.
