US President Trump signed an executive order on the 14th, under which starting from November 13, so-called “reciprocal tariffs” will no longer be imposed on certain agricultural products.
According to Xinhua News Agency, citing documents released by the White House, the agricultural products no longer subject to “reciprocal tariffs” include coffee, tea, tropical fruits and juices, cocoa, spices, bananas, citrus, tomatoes, beef, as well as some fertilizer products.
The White House stated that this adjustment to the scope of “reciprocal tariffs” is mainly based on the progress of negotiations between the US and its trade partners, as well as current US domestic demand and production capacity for certain products.
However, several US media outlets reported that upward pressure on prices is an important reason behind the government's tariff adjustment. Some analysts believe that the recent consecutive defeats suffered by the Republican Party in local elections indicate that voters are expressing dissatisfaction with rising prices. In addition, the record-breaking federal government “shutdown” is expected to dampen US economic growth in the fourth quarter and has also become an important factor prompting the government to adjust its tariff policy.
According to data from the US Department of Labor, the US consumer price index (CPI) year-on-year increase has risen steadily from 2.3% in April to 3% in September. In particular, prices of beef, coffee, and tea drinks in September rose by more than 10% compared with the previous year.