Coffee drinkers, perk up — the Trump administration plans to roll back tariffs on some foreign products, including coffee beans grown in Brazil.
Treasury Secretary Scott Bessent, speaking on “Fox & Friends,” said the relief would apply to grocery items that are hard to grow in this country.
“You’re gonna see substantial announcements over the next couple of days in terms of things we don’t grow here in the United States, coffee being one of them,” Mr. Bessent said. “Bananas, other fruits, things like that.”
Mr. Trump’s decision to impose high tariffs on other countries, including a 50% tariff on major coffee producer Brazil, is reverberating in the grocery aisle.
The average price of a pound of ground coffee reached $9.14 in the U.S. in September, up 41% from the same time last year. Producers and importers blame poor growing weather and new tariffs.
Mr. Trump is imposing tariffs to protect domestic industries, noting that products made in America bolster the domestic workforce and aren’t subject to duties. Mr. Trump also targeted Brazil, in part, over its prosecution of conservative ex-leader Jair Bolsonaro, a major Trump ally.
The U.S. had a nearly $7 billion trade surplus with Brazil in 2024, so critics of the move found it perplexing.
Rep. Ro Khanna, California Democrat, filed legislation to eliminate tariffs on coffee, saying it made little sense to impose tariffs on an industry without a major footprint in the U.S.
Mr. Trump faces pressure to lower grocery prices after he campaigned on reversing the inflation crisis that dogged President Biden.
Democrats dialed up the heat by winning elections in Virginia, New Jersey and New York City with an affordability mantra.
Mr. Trump recently endorsed larger imports of Argentine meat to reduce beef prices. He also told the Justice Department to investigate whether foreign-owned meatpacking companies were keeping prices high through collusion.
White House press secretary Karoline Leavitt on Wednesday said Mr. Trump took “aggressive actions” on affordability, including deregulation to decrease energy costs and deals with pharmaceutical companies to lower drug prices.
Mr. Bessent did not detail how the tariff changes on coffee, bananas and other items would be structured, though he said the move would produce immediate results.
“That will bring the prices down very quickly,” he said.
Mr. Trump signed an executive order in September that signaled he might modify tariffs on products that “cannot be grown, mined or naturally produced” in the U.S., or cannot be made in amounts that satisfy domestic demand.
He also teased moves to lower coffee tariffs in a Tuesday interview with Laura Ingraham of Fox News.
“Coffee, we’re going to lower some tariffs. We’re going to have some coffee come in,” Mr. Trump said. “We’re going to take care of all of this stuff, very quickly, very easily.”
The alcohol industry said it doesn’t want to be left out of the relief, particularly on products from the European Union.
“Many spirits, including Scotch, cognac and Irish whiskey, are distinctive products that can only be made in their country of origin,” Distilled Spirits Council CEO Chris Swonger said Wednesday. “A return to zero-for-zero tariffs on U.K. and EU distilled spirits products will boost the struggling U.S. hospitality industry just as the important holiday season begins.”
Mr. Bessent said Mr. Trump inherited a price crisis from Mr. Biden and that current policies will jump-start U.S. manufacturing and deliver high wages for Americans.
Mr. Trump’s critics argue that tariffs increase costs on U.S. importers, who must pay the duties to customs, and consumers who face trickle-down costs at the checkout counter.
The president is proposing a $2,000 tariff rebate check for low and middle-income Americans, though his idea would require an act of Congress.
“That would be for families making less than, say, $100,000,” Mr. Bessent said, adding that nothing is final. “It’s in discussion.”
Mr. Trump previously teased a dividend for Americans from savings created by the Department of Government Efficiency, though that never materialized.
Ms. Leavitt said Mr. Trump is serious about the tariff dividend.
“The White House is committed to making that happen,” Ms. Leavitt said. “We are currently exploring all legal options to get that done.”
