White House Provides Tariff Relief for Consumer Agricultural Products
On November 14, President Donald Trump issued an executive order (EO) to exempt certain agricultural products from reciprocal tariffs, effective immediately. The new EO modifies “Annex II,” first issued alongside the April EO that created the reciprocal tariff regime, to exempt imports including coffee and tea; tropical fruits and fruit juices; cocoa and spices; bananas, oranges, and tomatoes; as well as beef.
A White House Fact Sheet, issued alongside the new EO, describes how “Given the substantial progress in reciprocal trade negotiations—including the conclusion of 9 framework deals, 2 final agreements on reciprocal trade, and 2 investment agreements … President Trump has now determined that … certain qualifying agricultural products will no longer be subject to those tariffs, such as certain food not grown in the United States.”
The tariff relief appears intended to respond to public concerns over rising prices of consumer staples; however, coffee from Brazil—a major producer—will remain subject to a separate 40% tariff imposed under a July EO.
Below outlines and provides analysis of these exemptions.
Modifying the Scope of the Reciprocal Tariff With Respect to Certain Agricultural Products (Executive Order, Fact Sheet)- Tariff Relief. Goods ranging from beef, fruit, spices and fertilizers, among other products, will be exempt from the 10% baseline tariff and country-specific reciprocal tariffs on or after 12:01 a.m. EST on Nov. 13, 2025. However, agricultural products imported from China or Canada and Mexico that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin requirements or qualify for USMCA preference will remain subject to trafficking tariffs.
- Implementation. The Secretary of Commerce and the U.S. Trade Representative (USTR) are directed to continue monitoring the national emergency related to the U.S. trade deficit and inform the president if further action is necessary to address the threat.
- Refunds. U.S. Customs and Border Protection (CBP), to the extent necessary, is directed to refund all duties collected pursuant to applicable law.
Analysis
The EO appears to mark the first time that the Trump administration has provided unilateral tariff relief in response to domestic concerns over rising prices. President Trump has been hesitant to grant exemptions to his developing tariff regime, arguing that they would undermine the goals of his tariff policies—including reciprocity, reshoring and revenue. Previous relief has come through trade deals or targeted exemptions for specific industrial and pharmaceutical inputs, including goods that will likely become subject to “sectoral” tariffs imposed under Section 232 of the Trade Expansion Act of 1962.
The unilateral relief for consumer agricultural staples, including coffee, fruit and beef, appears to demonstrate that, although President Trump remains committed to imposing tariffs, his administration will take steps to mitigate negative impacts. The administration has long denied that tariffs increase consumer prices, arguing that foreign importers pay the price of U.S. tariffs.
Update
On November 20, President Trump issued an additional EO exempting coffee and certain other agricultural imports from a separate 40% tariff on imports from Brazil. Together these two actions reduce IEEPA-based tariffs on coffee and certain other products of Brazil from 50% to zero.
