Donald Trump is facing renewed pressure to address inflation and rising costs of living as the US midterm elections draw closer. After months of insisting tariffs wouldn’t increase prices, the Trump administration has begun slashing agricultural tariffs in an attempt to ease the financial burden on American households. This move comes as Trump’s approval ratings on economic management face scrutiny following a recent mayoral election outcome influenced by voter concerns over affordability.
Recent tariff rollbacks include exemptions for food products from Argentina, Ecuador, Guatemala, and El Salvador, as well as lowered tariffs on beef, coffee, and other agricultural goods, including Australian beef. The decision addresses specific concerns over record-high beef prices in America and a significant surge in coffee prices, partly attributed to tariffs previously imposed on Brazil. Bank of America market strategist Michael Hartnett suggests that controlling affordability will be key to electoral success in the upcoming midterms.
Trump’s strategy involves a multi-pronged approach, including pressuring the Federal Reserve to lower interest rates and considering further stimulus payments to households. While these measures aim to stimulate the economy and boost the sharemarket, concerns remain about whether they will effectively address the underlying issues of inflation and inequality. Some analysts suggest that creating a boom on Wall Street could exacerbate anger among Americans feeling left behind by rising prices.
