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U.S. Signals Imminent Tariff Cuts on Coffee and Bananas

The White House pitches the shift as a price-cutting step after voter backlash over inflation.

Overview

  • Treasury Secretary Scott Bessent said "substantial" tariff-relief announcements targeting items the U.S. does not grow—such as coffee and bananas—will arrive in coming days, with specifics not yet provided.
  • President Donald Trump said the U.S. will lower some tariffs on coffee imports.
  • Bessent said the measures should reduce prices quickly, with households starting to feel better about the economy in the first half of 2026.
  • The policy pivot follows earlier tariff hikes, including a 50% duty on Brazilian goods in July, alongside a Brazilian drought that helped push coffee futures up about 20% this year and roughly 45% over 12 months.
  • Officials are also discussing a $2,000 rebate for people earning under $100,000, which Bessent characterized as still under discussion.