Trump rolls back tariffs on groceries fearing US voters’ ire over inflation; Indian exporters cheer

US President Donald Trump has rolled back tariffs on more than 200 food products, including coffee, tea, spices, beef, bananas, and orange juice, fearing growing angst among American consumers over the high grocery costs in a sharp reversal from his earlier stand when he insisted that the enhanced duties are not fuelling price rise. The stand reversal comes after Democrats romped to a string of victories in state and local elections in Virginia, New Jersey, and New York City, where growing voter concerns about affordability, including high food prices, were a key issue. Trump told reporters aboard Air Force One, “We just did a little bit of a rollback. The prices of coffee were a little bit high, now they’ll be on the low side in a very short period.”

He said that he would move forward with a $2,000 payment to lower- and middle-income Americans next year and that it would be funded by tariff revenues. “The tariffs allow us to give a dividend if we want to do that. Now we’re going to do a dividend, and we’re also reducing debt,” he said.

Also Read: Delhi blast suspects used ‘dead drop’ emails to plan attacks, reveals probe

Over 200 food items in list of exemptions

The list of exemptions includes over 200 items ranging from oranges, acai berries, and paprika to cocoa, chemicals used in food production, fertilisers, and even communion wafers.

It also mentions a range of spices like black pepper, cloves, cumin, cardamom, turmeric, ginger, some varieties of tea, mango derivatives, and nuts, including cashews, which India exports to the US.

India accounts for around 20 per cent of the cashew nut imports worth $843 million.

The White House said Trump decided certain food items could be exempted since they were not grown or processed in the US.

The exemptions earned praise from several industry groups, while others expressed disappointment that their products were excluded from the list.

Also Read: Delhi Police file 2 FIRs against Al Falah University after terror module bust

Trump imposed a 10% base tariff on imports from every country, besides varying additional specific duties, and had been till now insisting that higher costs were triggered by policies enacted by Biden and not the tariffs imposed by him.

Consumers were frustrated over high grocery prices, which could rise further next year as companies start passing on the full brunt of the import duties.

WATCH: Iran's intercontinental missile reaches American soil

‘Putting out a fire they started, claiming it as progress’

A top Democrat on the House of Representatives Ways and Means Committee, Richard Neal, said, “The Trump administration is putting out a fire that they started and are claiming it as progress.”

“The Trump Administration is finally admitting publicly what we’ve all known from the start: Trump’s Trade War is hiking costs on people,” Neal said in a statement.

“Since implementing these tariffs, inflation has increased and manufacturing has contracted month after month.”

There was growing disquiet in the US over the cost of living, reflected in voter dissatisfaction as the Democrats campaigned on “affordability” and won.