Trump rolls back tariff stand after Virgin, New Jersey defeat:Tariffs lifted on beef, coffee and fruits; public anger grows over inflation

US President Donald Trump on Friday signed an executive order removing tariffs on dozens of agricultural items, including beef, coffee and fruits. The administration has cited rising inflation as the key reason for the move. The decision follows the Democratic Party’s recent wins in the Virginia and New Jersey elections, where inflation and high prices dominated voter concerns. According to officials, lifting these tariffs is aimed at easing pressure on consumers and stabilising prices. Products now exempt from tariffs include beef, coffee, tea, fruit juices, cocoa, spices, bananas, oranges, tomatoes and select fertilizer categories. Decision taken to increase imports related to agricultural products In recent months, prices of several food products including beef had seen continuous increases. In April, Trump had imposed tariffs on several countries. His administration claimed that these would not increase consumer prices. But the result was opposite. The tariff on major beef exporting countries like Brazil was held responsible for this. This decision came immediately after agreements with Ecuador, Guatemala, El Salvador and Argentina. These will reduce import taxes on agricultural products from these countries. This week Trump hinted at reducing tariffs on coffee to boost imports. Mexico is America’s largest agricultural partner In 2025, Mexico is America’s largest agricultural trading partner, ranking top in both exports and imports. According to United States Department of Agriculture (USDA) data, in 2024 America exported a record $30.3 billion worth of agricultural products to Mexico, which was 7% more than 2023. In terms of total trade value, during 2020-24 average, Mexico imported $41.6 billion from America, which is about 25% of all agricultural imports, while Canada is in second place with $35 billion. Major exports include corn ($5.51 billion), pork, dairy products, soybeans and chicken meat, while imports mainly consist of tomatoes, avocados, berries and vegetables. Due to the USMCA (United States-Mexico-Canada Agreement), tariffs on most Mexican products are zero, which has made trade easier and faster. Exports have increased by 65% in the last four years. Trump imposed tariffs on more than 100 countries On March 5, Trump announced in a joint session of the US Congress that he would impose tariffs on countries worldwide. He said that our economy is continuously going into deficit. To avoid this loss, we will impose tariffs on all those countries that put tariffs on our goods. President Trump announced tariffs on 69 countries including India after about a month on April 2. This was to be implemented from April 9, but Trump postponed it then. Later on July 31, Trump imposed tariffs on more than 100 countries, which was fully implemented in August. India not ready to accept non-vegetarian cow’s milk There is a dispute between India and America regarding dairy products. America wants its dairy products like milk, cheese, ghee to be allowed for import in India. India is the world’s largest milk producing country and millions of small farmers are engaged in this sector. The Indian government fears that if American dairy products come to India, they could cause huge losses to local farmers. Additionally, religious sentiments are also involved. In America, cows are fed enzymes (like rennet) made from animal bones for better nutrition. India considers milk from such cows as ‘non-veg milk’ meaning non-vegetarian milk. South Korea: Rice and Beef Market Not Opened The US has imposed a 15% tariff on South Korea. However, South Korea has not opened its rice and beef market in the interest of its farmers. South Korea has banned the import of beef from American cattle over 30 months old. This is due to Mad Cow Disease. It is believed that this disease occurs in older cattle. Despite this restriction, South Korea is still the largest buyer of American beef. In 2024, it purchased American meat worth approximately $2.22 billion. In addition, there are strict rules on genetically modified crops. The Korean Farmers’ Union and Hanwoo Association had warned the government not to sacrifice its farmers under American pressure. High Tax on Dairy and Meat by Switzerland Switzerland imposes very high taxes on agricultural products like dairy and meat to protect local farmers. This makes it difficult for foreign products to enter the market. In Switzerland, about 25% of the country’s farming comes from dairy. Here, the government helps in purchasing crops from farmers so that they continue farming while also protecting the environment. Iceland impose high tax on foreign products Iceland is among the countries that have avoided entering agreements with other nations on dairy and agricultural products. The country offers substantial subsidies to its farmers and imposes high taxes on imported goods to shield its domestic agriculture sector. As a result, the market for foreign products remains restricted. The government provides financial support and incentives to local farmers to encourage continued cultivation and ensure national food security.