For some time now the US has been experiencing significant economic turmoil. The American economy has been continuously hit by inflation. Because of this the prices of many food items have increased in recent years.
The burden of inflation is increasing day by day and it is becoming impossible for an average family to afford everyday necessities. Now every American citizen is troubled by this inflation. Some are even blaming Donald Trump for it. Yes people are saying that inflation in America is increasing because of Donald Trump’s policies.
Grocery Bills May Finally Fall in the U.S.
However, to a large extent, people’s concerns are valid. For some time now Donald Trump has started imposing tariffs on goods imported from other countries. Yes President Donald Trump has started levying tariffs on goods coming from abroad due to which American citizens now have to buy imported goods at higher prices. At the same time, the local industry is being promoted in the US to compete with foreign goods.
The American government is adopting various strategies to bring stability to the local industry, due to which the prices of many goods have skyrocketed. It’s worth noting that some goods are neither manufactured nor grown in the US and due to increased tariffs on these goods they have become more expensive than before. This has become a burden for the citizens living in America.
What is Tariff Policy?
A tariff policy is essentially a type of government fee or tax imposed on goods coming from foreign countries. Many goods in the US are imported from abroad. Yes there are many goods that are neither grown nor manufactured in the US, and these goods are supplied to the American people by other countries.
However for some time now the US has significantly increased the price of goods coming from other countries. Even if ordinary American citizens want to buy these goods, they have to spend more than their budget allows. The US government’s objective behind the tariff policy was quite clear to prioritize domestic industries, encourage citizens to buy domestic goods instead of cheaper foreign goods, maintain a trade balance, and increase government revenue.
What Was The Impact Of The US Government’s Tariff Policy?
Since the US government changed its tariff policy buying goods has become more expensive for consumers. Because goods imported from abroad have become more expensive consumers are having to pay exorbitant prices for essential items.
Due to the increased tariffs, countries around the world have reduced their exports to the US, which has also led to a decline in the American economy. Many American industries depend on foreign countries for raw materials, and now that the US has increased tariff rates the cost of raw materials has increased. As a result, domestic products have also become comparatively more expensive.
Decision To Withdraw Tariffs
However the US government has recently decided to withdraw the tariff policy taking into account the difficulties faced by the people. It is important to note that tariffs will not be removed from all goods under this policy. Instead, tariffs will be reduced on some goods to provide some relief to the public from inflation.
Recently the US government issued an executive order in which President Trump clearly announced that the US government will no longer impose tariffs on all food items. Food items that are produced in very small quantities or not at all in the US will be imported without tariffs, and no tariffs will be levied on them so that citizens can get essential goods at lower prices.
Which Items Could See Price Drops In The Coming Months?
The US government is planning to remove or reduce tariffs. Which may help to decrease in the price of some goods, Especially those goods which are not produced or grown in the US such as:
Coffee and Tea: Coffee and tea are two basic and most used products in US. Unfortunately its imported into the US from other countries. As these items are not local they are already expensive in the US and tariffs policy have further increased their prices. Therefore, the government is likely to provide tariff relief on coffee and tea.
Bananas, oranges, and mangoes: Bananas, oranges, and mangoes are not grown in the US. They are mostly imported. Since tariffs have increased, these common fruits have become more expensive in the US. Therefore, tariffs will likely be removed from these items to stabilize prices.
Tomatoes and Fruit Juices: Tomatoes are also imported into the US. Fruit juices are also not produced in the US requiring their import. Increased tariffs have led to higher prices for these goods. In the coming months, the US government will likely remove these tariffs to lower the cost of these essential items.
Chocolate Powder and Spices: Chocolate powder and spices are also items that are neither produced nor grown in the US. They are imported from Asian countries. Recently, due to increased tariffs, these common items had become very expensive. The US federal government will now likely remove tariffs from these items as well.
What Impact Will Removing Tariffs Have On Prices?
Once tariffs are removed or reduced on the above-mentioned items, prices will gradually stabilize. People will be able to buy these essential goods at lower prices. The prices of coffee, bananas, tea, spices, etc. will stabilize. These are everyday necessities for US citizens. However it’s important to note that the tariffs are not being completely removed, but rather reduced on some goods, and the results will only become apparent gradually over time.
Overall, the US government is indeed considering making some changes to its tariff policy. This will provide significant relief to American citizens, but the tariff policy is not being completely eliminated.
Therefore, the prices of some goods will still remain high. LIt remains to be seen what steps Donald Trump will take regarding the economic stability of the United States. Will he completely remove the tariffs due to public pressure and political considerations, or will he only make minor adjustments?