This sound is generated automatically. Please let us know if you have any feedback.
Summary of diving:
- President Donald Trump on Friday issued an executive order exempting hundreds of agricultural products from his reciprocal tariffs, noting that various trade deals justify the exemptions.
- Coffee, tea, bananas, oranges, tomatoes, beef, tropical fruits, fruit juices, some fertilizers and food products used for religious purposes are among the 237 classifications and eleven categories of agricultural products that are now exempted from government counter-tariffs.
- The new tariff exemptions are retroactive, and goods entering the United States for consumption (or leaving warehouses for consumption) beginning November 13 are eligible for reciprocal tariff-free treatment. Refunds are granted on an order-by-order basis according to normal customs procedures.
Diving Insights:
Since April, many agricultural products have been subject to global tariffs of at least 10 percent — or more, in some countries — as part of the Trump administration’s retaliatory tariff policy. However, over the past few months, the government has periodically adjusted the list of products that are subject to those tariffs.
The White House said the farm exemptions are a result of the administration’s progress in various trade deals, including with countries that produce agricultural goods not normally grown in the United States.
In the past few months, the US has formalized trade agreements with Cambodia and Malaysia, while reaching “framework” agreements or announcing progress on deals with El Salvador, Argentina, Ecuador, Guatemala, Thailand, Vietnam, Switzerland, the United Kingdom and the European Union, according to the fact sheet.
For example, in 2024, Guatemala was the largest exporter of fresh and dried bananas to the United States and the second largest exporter of tropical fruits — two products now exempt from reciprocal tariffs, according to data compiled by Supply Chain Dive. Similarly, in 2024, Thailand and Vietnam were the top two exporters of single fruit juices, including coconut water, to the United States.
Food industry trade associations have repeatedly called on the Trump administration to remove some products from tariffs due to sourcing constraints. For example, in September, the Consumer Brands Association called on the government to update its tariff exemptions to include tin mill steel.
As the largest domestically produced sector in terms of labor, the consumer packaged goods industry proudly sources 90 percent of its ingredients and inputs from American farmers and suppliers, the Consumer Brands Association said in a statement at the time, but some ingredients and agricultural goods are simply not available domestically due to climate, geography and other factors.
In August, FMI — the Food Industry Association, which represents businesses including grocery store operators and food wholesalers — said it planned to work with federal officials to “create a waiver process that excludes those cases.” [imported] Foods on which tariffs would not benefit US industry, such as cocoa, cinnamon, and bananas.
On Friday, the trade group issued a statement praising the Trump administration’s latest actions.
“Many factors affect the price of food on grocery store shelves – including weather and crop yields, energy and transportation costs, packaging and labor, among many others. Tariffs are a significant factor in this complex mix of supply chain effects. President Trump’s announcement to reduce tariffs on a significant amount of consumer imports is a critical step the President can take to ensure food prices are stable. Leslie G. Sarasin CEO The company said in the statement.
About the Author
