WASHINGTON, D.C. (RFD-TV) — President Donald Trump’s new executive order carving out tariff exemptions for major food imports marks a significant shift in trade policy — one that carries clear implications for both U.S. consumers and American agriculture.
The order removes sweeping duties from products like beef, tomatoes, bananas, and coffee, reversing earlier tariff actions that helped fuel higher grocery bills. While the administration frames the move as an affordability fix, it also represents a targeted recognition that food inflation has become a political and economic pressure point heading into winter.
The Food Industry Association is praising the move, saying it should help consumers better afford groceries. The cuts came after concerns from the meat giant Omaha Steaks CEO, who warns ground beef prices could hit $10 a pound by next fall. Treasury Secretary Scott Bessent told Fox News this weekend that the White House is working to prevent that from happening, but says prices likely will not come down until 2027.
The President’s trade policy has been front and center throughout his entire term. The National Potato Council’s CEO, Kam Quarles, is hopeful he can strike the right balance over time.
“The tariffs can work out well, but if you leave them on permanently, it can create a lot of volatility,” Quarles said. “But in the short term, it’s a great negotiating tactic to get to a better deal. And it’s a balance. You want to have a better deal for American producers. You don’t want to encourage foreign competitors to start going around the United States and creating more advantageous agreements with each other rather than with us.”
Quarles also said it has been encouraging to see other countries return to the negotiating table over the last several months, and he hopes the White House can keep the momentum going.
For consumers, the immediate effect is downward pressure on supermarket prices, especially for imported fresh produce and tropical goods, where tariffs had added noticeable cost. Refunds will be issued retroactively, and the new framework deals with Argentina, Ecuador, Guatemala, and El Salvador, pointing toward additional relief later this year. But the impact on U.S. producers will be mixed. Import-sensitive sectors — especially winter vegetables, fruit, and some beef segments — could face stiffer competition from lower-cost origins. Meanwhile, feed markets, ethanol co-products, and export-oriented row crops will watch closely whether reciprocal tariff talks open new lanes for U.S. shipments.
For farm country, the policy signals a strategic pivot: easing food inflation takes priority, even if it introduces tougher price competition for some domestic growers and packers.
China is expected to purchase some U.S. soybeans this year, with shipments likely along the way, but a former USDA economist warns that the situation seems unstable. Retired USDA economist Dr. Fred Gale states that China has not confirmed the deal made with President Trump in recent weeks. The White House claims China will buy 12 million metric tons of U.S. soybeans this year, but Gale believes this is becoming less probable as the year progresses.
According to Gale, China has already imported approximately 96 million metric tons of global beans, with the U.S. share accounting for just under 17 million metric tons for the entire year.
Gale also notes that tariffs are influencing the situation, with China imposing a 13 percent tariff on U.S. beans and only 3 percent on beans from Brazil.
Treasury Secretary Scott Bessent hopes an agreement with China on rare earth minerals and soybeans can be finalized by Thanksgiving. He made these comments during appearances on Sunday news programs.
