The Trump administration announced new tariff exemptions for, among other things, tomatoes and bananas. Other agricultural products, such as beef and coffee, are also covered under the new regulation.
The decision exempts these products from the so-called "reciprocal" tariffs, which Trump imposed as retaliation on products from countries that tax American goods. These tariffs could range from 10% to 50%. However, since their introduction, the prices of these products have risen sharply, drawing a lot of criticism. For example, coffee from Brazil, the largest supplier to the U.S., has been taxed at 50% since August. In September, consumers paid nearly 20% more for coffee than a year earlier, according to Consumer Price Index data.
Under the new regulation, which came into effect on Thursday, tariffs on tea, fruit juices, cocoa, spices, oranges, and various fertilizers are also being removed. According to Treasury Secretary Scott Bessent, the policy focuses on products "that we do not grow ourselves here in the U.S."
However, this does not mean a complete exemption from import duties, and there is still uncertainty about what will happen, for example, with Mexican tomatoes. According to some sources, they will continue to be taxed at 17%, because this measure is related to the expiration of the Tomato Suspension Agreement trade deal last July. This, too, almost immediately resulted in higher prices in the U.S.
The International Fresh Produce Association (IFPA) issued the following statement:
"We welcome the Trump administration's recognition that supporting a healthier America requires keeping fruits and vegetables affordable and available. Today's announcement acknowledges that easing cost pressures on items not grown domestically in sufficient supply is essential to maintaining the affordability of high-quality fresh produce products.
"For years, IFPA has emphasized that tariffs on products not produced at scale year-round could place an avoidable burden on families, limit healthy choices, and disrupt the marketplace. We have consistently advocated for the removal of tariffs and non-tariff barriers that are unscientific or not risk-based on fresh produce. Because of the seasonal and geographic nature of certain commodities, consumers and growers both benefit from fair trade in fresh produce and floral products. With that rationale, we will continue to make the case for similar exemptions extended to floral products.
"We also urge the Administration and Congress to pursue policies to keep U.S. growers competitive, particularly in production-related costs and labor pressures. This will ensure consumers can obtain the nutritious foods and floral products that enrich their health, well-being, and daily lives year-round.
"IFPA looks forward to working proactively with the Trump administration and leaders around the world on trade policies that ensure the full produce supply chain is empowered to bring consumers a consistent, reliable supply of fresh produce and floral products."
Today's announcement follows IFPA's longstanding advocacy for targeted tariff relief. In March, IFPA sent a letter to administration officials urging exemptions for produce and floral products to safeguard the availability of affordable, nutritious food—an effort the association has continued to advance throughout the year.
In a related effort, IFPA and the Society of American Florists (SAF) jointly urged the U.S. Trade Representative and the Department of Commerce to exempt all imported cut flowers from tariffs. The Nov. 3 letter emphasized the essential role imported cut flowers play in meeting year-round consumer demand and detailed how tariffs disrupt the global floral supply chain and increase costs for U.S. businesses.
For more information:
International Fresh Produce Association
+1 (800) 220-3414
https://www.freshproduce.com/