Tariff Talk

It’s official. We can go bananas over the cost of coffee…and many other agricultural (food) items. Over the weekend President Trump issued an order to add many items to the list of excluded items from per country rate reciprocal tariffs. The list of excluded items now includes beef products, a wide variety of nuts and fruits (orange, guava, bananas, pineapple), coffee and tea, and spices such as cinnamon, ginger, dill, and vanilla beans.

The change also includes a list of items for potential exclusion; either items not clearly identified in overly general HTS codes (coconut water, certain citrus juices, and tropical frozen fruits) or items being imported specifically for religious purposes. This includes articles such as palm branches, breads, cakes, and certain essential oils.

These changes also help lay the foundation for upcoming trading agreements laid out for Switzerland, Argentina, Ecuador, El Salvador, and Guatemala. Switzerland is reported to have the potential to drop to 15% from 39%, while the other nations are likely to see additions to the exclusion list, which may be country-specific. The reputed Annex II, once starting as a list of HTS items excluded from the reciprocal tariff, has evolved into a general, per-sector, and per-country framework.