Trump’s Tariff Rollback: What the Removal of Beef, Coffee & Coconut Duties Means for Consumers and Key Companies
President Donald Trump’s latest executive order removes reciprocal tariffs on more than 200 agricultural imports — including beef, coffee, avocados, and coconuts. The move aims to relieve consumers from rising grocery costs while supporting companies facing high import expenses. Here’s the full breakdown of the impact, beneficiaries, and potential risks.
1. Why Trump Rolled Back These Tariffs
On November 14, 2025, President Trump signed an executive order reversing tariffs on widely imported agricultural products such as beef, coffee, coconuts, and avocados. These goods are not produced at sufficient scale domestically, which has contributed to higher retail prices across the U.S.
Grocery inflation has surged: beef prices are up about 16% year over year, while coffee prices climbed roughly 19%. With these changes, the administration aims to reduce costs for both consumers and businesses.
2. Economic & Political Motivations Behind the Rollback
- Consumer Relief: Increased grocery prices have sparked voter dissatisfaction — tariff relief is a strategic move to address food inflation.
- Trade Negotiation Progress: Recent deals with Brazil, Argentina, and other Latin American nations cleared the way for exemptions.
- Domestic Supply Limitations: The U.S. cannot meet national demand for these goods, making affordable imports critical.
3. Companies Likely to Benefit
Starbucks
Starbucks reported a 5 percentage point drop in operating margin, driven by tariffs and inflation. Tariff relief on coffee and tea imports will directly support margin recovery.
Keurig Dr Pepper
Import costs caused a 4% decline in international operating income. Lower coffee tariff rates may help stabilize profitability.
JM Smucker
Smucker’s retail coffee segment margin declined by 9 percentage points, highlighting its dependency on affordable imported beans.
Vita Coco
Facing a 23% blended tariff on coconuts, Vita Coco raised prices earlier this year. The rollback may prevent future price hikes and reduce consumer churn.
Shake Shack
Beef inflation has increased costs by “mid-teen percentages.” The company raised prices 2%, but easing tariffs could help stabilize future menu pricing.
Cheesecake Factory
Tariffs have weighed on consumer confidence, according to CFO Matthew Clark. Lower import taxes may improve both business sentiment and guest traffic.
Chipotle Mexican Grill
As a chain reliant on fresh ingredients, Chipotle stands to benefit indirectly from reduced import pressures across its supply chain.
4. Broader Implications and Possible Risks
Positive Outcomes
- Lower grocery prices for coffee, beef, and other essentials
- Improved margins for food and beverage companies
- Strengthened trade relationships with key import partners
Risks & Unknowns
- Refund Delays: Importers may wait months for tariff refunds.
- Companies May Not Lower Prices: Savings might be kept as profit.
- Policy Reversals: Future tariff changes remain unpredictable.
- Domestic Producer Pushback: U.S. farmers may oppose the lower-cost imports.
- Ongoing Inflation: Labor, freight, and packaging costs remain high.
Conclusion
Trump’s tariff rollback represents a major shift in economic and trade strategy. While consumers may welcome relief from high food prices, the long-term impact will depend on whether companies pass savings along and whether future trade policy remains stable. For corporations like Starbucks, Keurig Dr Pepper, Shake Shack, and Vita Coco, the change could bring significant cost advantages heading into 2026.