Trump, after local election defeats, finally… exempts some agricultural products from reciprocal tariffs

Tariff reductions applied from imports the previous day

U.S. President Donald Trump on the 14th (local time) signed an executive order exempting certain agricultural products from reciprocal tariffs. It is interpreted as an attempt to placate public sentiment after the Republican Party's defeat in recent local elections.

President Trump announced country-specific tariffs called reciprocal tariffs last April, and this executive order removes some agricultural products from the scope of those reciprocal tariffs.

The tariff-exempt items include beef, coffee, tropical fruits including bananas and pineapples, nuts, and spices. These are mainly agricultural products that are scarce or not cultivated in the United States.

Trump administration officials announced the tariff exemption to lower food prices after high prices caused by reciprocal tariffs were cited as one of the reasons for the recent local election defeats.

U.S. economists have pointed out that imposing reciprocal tariffs raises consumer prices, but the Trump administration has dismissed this, saying exporters will bear the increased tariffs.

However, in the recent local elections the opposition Democratic Party swept the three key battlegrounds of New York, Virginia, and New Jersey, revealing that the Trump administration and the Republican Party have lost public support.

This executive order applies to products imported after 12:01 a.m. on the 13th Eastern Time, and if refunds of duties already collected are necessary, they should be refunded in accordance with appropriate laws and procedures.

Oh Se-sung, Hankyung.com reporter sesung@hankyung.com