Tariff policies are causing unrest, and even Trump can't withstand it anymore! On November 14, Trump unexpectedly issued tariff exemptions for dozens of agricultural products and foods, including beef, coffee, tropical fruits, and spices. The Wall Street Journal and Financial Times both pointed out that this move is to respond to the rising cost of living. Bloomberg put it more directly: rising prices have angered voters.

Tariff policies are causing unrest, and Trump can't withstand it

Since April this year, Trump has imposed "reciprocal tariffs" on almost all trading partners. At that time, the Trump administration firmly stated that there would be no exceptions to the "reciprocal tariffs." However, idealism is full, but reality is tough. As time went by, the negative impact of Trump's indiscriminate tariff policy continued to spread, leading to a steady rise in the prices of essential daily goods in the United States. For example, coffee prices in the United States have surged sharply over the past few months, with futures markets reaching record highs.

Bloomberg said: This is mainly related to Trump's high tariffs on Brazil. In July, Trump imposed a 50% tariff on Brazil due to a political event. Unintended consequences led to a stagnation of coffee trade between the two countries. Affected by the tariffs, the volume of coffee bean imports from Brazil to the United States dropped by more than half between August and October. However, the key point is that the United States produces very little domestic coffee, while the country is a major coffee consumer, which directly led to an increase in coffee prices.

Additionally, the price of beef in the United States has also risen due to tariffs. However, unlike coffee, the United States is a major beef producer. Even so, it still cannot meet today's market demand. Over the past few months, Trump has launched antitrust investigations against meat processing companies, accusing them of driving up beef prices. But after some efforts, beef prices remain high. In this context, Trump, who has always been enthusiastic about promoting American beef, was forced to make an exception on the tariff issue, importing beef from Argentina to lower market prices.

The Financial Times admitted: This tariff reduction will bring some relief to families who look at the prices in the supermarket meat section. Because the price of beef in the United States has soared to a historical high.

American coffee prices have surged due to tariffs

Sarasin, head of the food industry organization, told the Financial Times: This move should help consumers, hoping they can enjoy more affordable coffee in the morning.

Colvin, chairman of the National Council for Trade, said: The Trump administration finally admitted that lowering tariffs would reduce the cost of living for American consumers. This directly acknowledges a fact long pointed out by economists - tariffs drive up prices. However, the pain caused by tariffs to American working-class families and businesses goes far beyond beef, coffee, and bananas. He hopes that Trump will take more similar measures.

Democrats claimed that Trump's actions are still insufficient to slow down the damage caused by his erroneous trade policies. Don Bayer, a Democratic congressman from Virginia, said: "Trump finally acknowledged what we have always known: His tariff policies are pushing up prices for Americans. Although this move may alleviate some of the price increases caused by Trump, it cannot prevent inflation from worsening."

U.S. Trade Representative Griles said something thought-provoking: "We have truly reached a critical point. Now is the right time to launch certain programs."

The Wall Street Journal stated: This executive order from Trump exempted more than 100 common foods at once, including beef, fruits, nuts, and spices. This tariff exemption list is seen as a significant reversal of the Trump administration's signature "reciprocal tariffs." Obviously, under the pressure of rising public discontent and the upcoming election, even the most hardline trade protectionists sometimes have to bow to the economic reality of "everything is rising." The anger of voters has clearly become a political tsunami that the Republicans cannot ignore.

American beef prices have also surged, and now beef needs to be imported

However, this policy shift by Trump once again highlights his high level of unpredictability. Whether this "tariff cut before Thanksgiving" is a temporary measure or a real fundamental shift in Trump's tariff policy remains unknown.

Original article: https://www.toutiao.com/article/7573258432715702834/

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