Trump wants to reduce tariffs to contain the rise that haunts the US

Measure seeks to alleviate the cost of living and respond to popular pressure after negative electoral results

The White House has signaled it is about to announce a reduction in import tariffs on food products in an attempt to curb the high prices that continue to weigh on American families. The move comes amid growing pressure on the government to address the cost of living crisis that began during Joe Biden’s administration but still affects millions of citizens under Donald Trump’s presidency.

During an event in Economic Club of Washingtonthe president of the National Economic Council, Kevin Hassettstated that the government is considering adjustments to tariffs on essential foods. “One of the topics that people have been talking about in recent days is the possibility of changing customs tariffs for food products,” said Hassett. “I think there will be more changes.”

The economist, who is emerging as the favorite to succeed Jay Powell as head of the Federal Reserve next year, highlighted that the government is attentive to market fluctuations. “You do what you think is right, then you wait for things to happen, and when you realize you need to adjust something, you adjust it,” he said.

Earlier, the Treasury Secretary, Scott Bessantanticipated in an interview with Fox Business that the Trump administration is expected to make “substantial announcements” in the coming days. According to him, the measures should directly affect products such as coffee, bananas and other imported fruits, seeking to alleviate prices on supermarket shelves.

The statements come at a delicate moment for the White House. Last week, the results of municipal elections in New York and gubernatorial races in several states were unfavorable to Trump-backed candidates. Analysts point out that dissatisfaction with rising food prices and the effects of trade tariffs played a decisive role in the defeats.

In response to the criticism, Trump stated in a post on Truth Social which intends to grant a a dividend of US$ 2,000 to low and medium income families, from the collection of tariffs. The promise, however, has been met with skepticism by economists, who point out that the impact of the trade war on prices was more significant than expected, even if gradually.

Currently, inflation in the United States hovers around 3%a level considered controlled, but the rise in food prices is still a concern. Hassett recognized that this is one of the most sensitive points for the population. “Typical monthly grocery spending when President Trump left office [em 2021] it was about $400 a month. When President Biden left office, this value had risen to around US$510”, he highlighted.

He added: “Since then, it has risen to $512. So the rate of increase in food prices has dropped to almost zero. But the ground we have to make up is still a challenge for us, which we take very seriously.”

In August, Trump imposed broad tariffs on most of the US’s trading partners, raising the cost of importing many products and pushing the average US tariff to the highest level since before World War II. Although the country has granted specific exemptions for strategic sectors — such as semiconductors, pharmaceuticals and critical minerals — the government has also opened investigations that could result in new tariffs on these areas in the future.

To try to contain the economic and diplomatic damage, several countries sought limited bilateral agreements with Washington, obtaining specific reductions in certain tariffs. Still, the American administration maintained a 10% minimum referral fee on virtually all trading partners.

The announcement of possible tariff cuts therefore represents an attempt to rebalance economic policy and respond to the population’s concerns. In a scenario of uncertainty and political pressure, the White House is trying to signal that it is willing to act quickly to alleviate the burden of supermarkets on Americans’ pockets.

With information from Financial Times*