Tariff U-Turn: How Food Costs and Swiss Deals Are Reshaping U.S. Trade Policy

In a significant reversal of earlier trade policies, the Trump administration announced the removal of tariffs on more than 200 imported food items — including bananas, beef, coffee, and orange juice — effective retroactively as of midnight last Thursday.

The move follows months of high-profile tariff escalations and comes amid rising consumer frustration with the cost of groceries. Many of the newly exempt items have seen double-digit year-over-year price increases in the United States. While President Trump has frequently argued that tariffs do not raise prices for American consumers, he acknowledged on Friday that tariffs “may in some cases” raise prices.

Fact-check: despite the claim that the United States has “virtually no inflation,” the latest consumer-price data show annual inflation at roughly 3 percent — meaning prices continue to rise meaningfully for households.

Food-Tariff Rollback: What’s Changing

The rollback applies to key staples that have climbed sharply in price:

• Beef products saw some of the steepest increases, with ground beef and various cuts rising by double digits year-on-year.

• Banana prices rose significantly over the past year.

• Coffee, orange juice, and other imported food items also made the exemption list.

Economists note that while removing tariffs reduces costs at the import level, price relief for consumers may take time. Tariffs are only one component of broader supply-chain expenses — transportation bottlenecks, energy costs, and global commodity markets also play major roles.

Still, the rollback represents a clear shift: after months of politically charged rhetoric around so-called “Liberation Day tariffs,” the administration is finally responding to affordability concerns voiced by both consumers and retailers.

The Switzerland–Liechtenstein Deal: A Strategic Rebalancing

In parallel with the food-tariff changes, the United States announced a new framework trade deal with Switzerland and Liechtenstein.

Under the framework:

• Previous average tariff rates — 39 percent for Switzerland and 37 percent for Liechtenstein — will drop.

• The U.S. will reduce tariff rates on Swiss and Liechtenstein goods to match those applied to the European Union.

• Switzerland and Liechtenstein will eliminate tariffs on a wide range of agricultural and industrial goods imported from the United States.

• Both countries will streamline customs processes to make it easier for U.S. medical devices, machinery, and other products to enter their markets.

• Firms based in the two countries will invest at least 200 billion dollars in the United States, with more than 60 billion dollars scheduled for next year.

Fact-check: despite the large numbers publicly promoted, this is not a binding trade agreement. What was signed is a non-binding framework or memorandum of understanding — an expression of intent. The parties still have to negotiate a full, legally binding trade accord by early 2026, subject to domestic approval processes.

Why This Is Happening Now

Several political and economic dynamics appear to be driving the change:

• Consumer pressure: With grocery prices becoming a top domestic concern, rolling back food tariffs offers a direct way to address public frustration.

• Strategic recalibration: After months of tariff escalation, the administration is now selectively lowering barriers where politically advantageous or economically necessary.

• Swiss export strain: High U.S. tariffs had strained Swiss exporters, prompting them to push for a new arrangement to stabilize trade conditions.

• Investment incentives: The large headline investment commitments give the U.S. a political and economic incentive to portray the framework as a major achievement.

What to Watch Next

• Grocery prices: Will the changes actually lower consumer prices over the next several months? The answer depends on how quickly import-cost savings move through supply chains — and whether retailers choose to pass those savings on through lower price tags.

• Negotiations in early 2026: The Switzerland–Liechtenstein framework still needs to be converted into a finalized agreement, and some tariff changes may be phased in.

• Future trade deals: This could signal the start of similar selective deals with other nations.

• Domestic political impact: With household affordability at the center of public discourse, tariff relief may become a key talking point ahead of future political milestones.

ONEST Take: Taken together, the tariff rollback and the Switzerland–Liechtenstein framework look less like a strategic pivot and more like a reluctant correction. The administration is undoing tariffs that contributed to higher prices while avoiding any acknowledgment of earlier policy missteps. At the same time, Trump continues to weave personal political incentives into U.S. trade negotiations — blurring the line between economic policy and personal gain.