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Trump tariff cuts could impact grocery prices for consumers
Consumer strategist Lisa Miller joins LiveNOW's J Russell to discuss President Trump's tariff cuts on select food products, and what that could mean for consumers in the coming weeks.
WASHINGTON - President Donald Trump has further loosened tariffs on Brazil as part of his effort to lower consumer costs for Americans.
The decision, released Thursday, could lower the cost on coffee, fruit and beef, among other goods.
Tariff relief for Brazil could lower coffee, banana prices
Dig deeper:
Thursday's decision harmonizes Trump's plans, ensuring that neither the April nor July tariffs apply to certain products.
However, Brazil said that didn't affect levies that Trump had enacted in July to punish the country for prosecuting his political ally, former President Jair Bolsonaro.
FILE: Coffee beans at grocery store. (Credit: Creative Touch Imaging Ltd./NurPhoto via Getty Images)
Trump and Brazilian President Luiz Inácio Lula da Silva have been negotiating over trade, which could further reduce tariffs.
Trump rolling back tariffs
The backstory:
This comes one week after the White House said that Trump was rolling back some worldwide tariffs that were originally announced in April.
Last week, the Trump administration announced that it had reached trade frameworks with Argentina, Ecuador, El Salvador and Guatemala.
RELATED: Trump administration announces trade deal which could lower prices of bananas, coffee
Treasury Secretary Scott Bessent and Trump have each suggested that the tariffs are being relaxed as affordability issues are a key concern for Americans.
"You're going to see [a] substantial announcement over the next couple of days in terms of things we don't grow here in the United States. Coffee, coffee being one of them. Bananas, other fruits, things… that will bring the prices down very quickly," Bessent said during an interview on "Fox & Friends" last week.
During the interview, Bessent said that the current administration "inherited this affordability mess" and that the country is contending with one of the worst inflation crises in the history of the U.S.
Food costs remain high
Big picture view:
Trump continues to face scrutiny over his handling of the economy and concerns about affordability.
Food prices first surged when the COVID-19 pandemic disrupted supply chains, and they’ve continued to rise amid global pressures, including the war in Ukraine, new tariffs, and ongoing labor shortages.
A majority of Americans said in a recent poll that grocery costs were a "major" stressor.
Food costs remained elevated this year, increasing 3.1% in September from the same period a year ago. Bananas and coffee rose 6.9% and 18.9% on an annual basis, respectively.
RELATED: Dining out? Here's what's more expensive, based on October data
The U.S. grows bananas in Hawaii and Florida, but commercial production is limited, and most bananas are imported from countries where labor is cheaper and land costs are lower.
Beef prices are also at a record high after a drought left cattle inventory at the lowest level in 70 years. According to the latest consumer price index data from the U.S. Bureau of Labor Statistics, beef and veal prices rose 14.7% year-over-year in September, while uncooked ground beef was up 12.9%.
Earlier this month, Omaha Steaks President and CEO Nate Rempe cautioned that the nation’s shrinking cattle supply and record demand were driving a "$10-a-pound reality" that could stretch family budgets for years.
RELATED: Ground beef prices could hit $10 a pound, Omaha Steaks CEO warns
"We are headed for what I'm calling … the $10-a-pound reality. By [the] third quarter of '26, families are gonna see $10 a pound [for] ground beef in the grocery store. So we're in for a bit of a haul here," he continued. "I don't believe we'll see price[s] come down in any meaningful way until sometime in 2027."
Meanwhile, coffee prices have been rising in recent months, due to tariffs, along with drought and adverse weather conditions affecting production in key coffee-growing regions, including Brazil and Vietnam.
In 2023, about 80% of U.S. unroasted coffee imports came from Latin America, principally from Brazil (35%) and Colombia (27%), the U.S. Department of Agriculture said.
According to the Bureau of Labor Statistics, the average price of a pound of ground roast coffee cost $8.13 in June, up from $7.01 in January and $6.25 a year prior.
Other new data said the median monthly price of cold brew coffee on restaurant menus increased in October 2025 to $5.53 – up 4.7% from October 2024.
The Source: This story was reported from Los Angeles. The Associated Press, FOX News and previous FOX Local reporting contributed.