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tariffs
With US 'Paying the Price for Trump's Mistakes,' He Ends Tariffs for Bananas, Beef, Coffee, and More
The administration is "now acknowledging what economists and business leaders have told us from the beginning: that tariffs are driving up prices," said one journalist.
Nov 14, 2025
Although President Donald Trump didn't actually confess that his global trade war is driving up the cost of groceries for Americans, he did finally drop his dubiously named "reciprocal" tariffs on key imports on Friday.
According to a White House fact sheet, Trump's new executive order ends his tariffs on beef; cocoa and spices; coffee and tea; bananas, oranges, and tomatoes; other tropical fruits and fruit juices; and fertilizers.
The New York Times had reported Thursday that "the Trump administration is preparing broad exemptions to certain tariffs in an effort to ease elevated food prices that have provoked anxiety for American consumers."
The reporting drew critiques of the administration's economic policies, including from members of Congress such as Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), who said that "Trump just admitted it: Americans are footing the bill for his disastrous tariffs."
"While this move may alleviate some of the cost increases Trump caused, it will not stop the larger problems of rising inflation, business uncertainty, and economic damage done by Trump's crazy tariff scheme."
Also responding to the Times reporting, Sen. Elizabeth Warren (D-Mass.) wrote on social media Friday: "After months of increasing grocery prices, Donald Trump is finally admitting he was wrong. Americans are literally paying the price for Trump's mistakes."
More lawmakers and other critics piled on after Trump issued the order. CNN's Jim Sciutto said: "Trump administration now acknowledging what economists and business leaders have told us from the beginning: that tariffs are driving up prices."
MeidasTouch and its editor in chief, Ron Filipkowski, also called out the president on social media, with the outlet sarcastically noting, "But Trump said his tariffs don't raise prices."
OR, Trump Admits His Tariffs Caused Grocery Prices to Rise.
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— Ron Filipkowski (@ronfilipkowski.bsky.social) November 14, 2025 at 5:52 PM
Congressman Don Beyer (D-Va), who serves on the House Ways and Means Subcommittee on Trade, said in a Friday statement that "President Trump is finally admitting what we always knew: His tariffs are raising prices for the American people."
"After getting drubbed in recent elections because of voters' fury that Trump has broken his promises to fix inflation, the White House is trying to cast this tariff retreat as a 'pivot to affordability,'" Beyer said, referencing Democrats who won key races last week, from more moderate Mikie Sherrill and Abigail Spanberger, the incoming governors of New Jersey and Virginia, to democratic socialist Mayors-elect Zohran Mamdani of New York City and Katie Wilson of Seattle.
In addition to those electoral victories for Democrats, last week featured a debate over Trump's trade war at the US Supreme Court. According to Beyer: "The simple truth is that Republicans want credit for something they think the Supreme Court will force them to do anyway, after oral arguments before the court on Trump's illegal abuses of trade authorities went badly for the administration. Trump is still keeping the vast majority of his tariffs in place, and his administration is also planning new tariffs in anticipation of a Supreme Court loss."
"The same logic—that Trump's tariffs are driving up prices on coffee, fruit, and other comestibles—is equally true for the thousands of other goods on which his tariffs remain," he continued. "While this move may alleviate some of the cost increases Trump caused, it will not stop the larger problems of rising inflation, business uncertainty, and economic damage done by Trump's crazy tariff scheme."
"Only Congress can do that, by reclaiming its legal responsibility under the Constitution to regulate trade, and permanently ending Trump's trade war chaos," he stressed. "All but a handful of Republicans in Congress are still refusing to stand up to Trump, stop his tariffs, and lower costs for the American people, and unless they find a backbone, our economy will continue to suffer."
Huh. Trump dropped the tariffs on coffee, beef, and tropical fruit to LOWER PRICES. I thought other countries paid for those?
— Angry (@angrystaffer.bsky.social) November 14, 2025 at 5:50 PM
As the Associated Press noted Friday, "The president signed the executive order after announcing that the U.S. had reached framework agreements with Ecuador, Guatemala, El Salvador, and Argentina designed to ease import levies on agricultural products produced in those countries."
Trump's order also came just a day after Democrats on the congressional Joint Economic Committee released a report showing that US families are paying roughly $700 more each month for basic items since Trump returned to office in January—with households in some states, such as Alaska and California, facing an average of over $1,000 monthly.
The president has floated sending Americans a $2,000 check, purportedly funded by revenue collected from his tariffs, but as Common Dreams reported Wednesday, economist Dean Baker of the Center for Economic and Policy Research crunched the numbers and found that the proposed "dividend" doesn't add up.
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As Trump Drives Up Costs, Record Share of Subprime Auto Loans Overdue
"The vulnerable part of the economy is having an even tougher time making ends meet," said one finance professor.
Nov 13, 2025
Last month's jobs report may never be released after being delayed during the federal government shutdown, but other figures demonstrate the havoc President Donald Trump is wreaking on the US economy, including new data for subprime borrowers behind on car payments.
The share of US borrowers with low credit scores or limited credit histories who are at least 60 days past due on their auto loans rose to 6.65% in October, the highest percentage since Fitch Ratings began tracking it in the early 1990s.
"The vulnerable part of the economy is having an even tougher time making ends meet," Massachusetts Institute of Technology finance professor Christopher Palmer told Marketplace on Wednesday in response to the new data.
As Bloomberg reported Wednesday:
Miriam Neal in Atlanta is one of those struggling to afford all of her expenses. The 29-year-old lost her job as a research fellow in December and couldn't make her car payments, leading to her vehicle being repossessed. Thanks to a GoFundMe that she started in July, she was able to get her car back, but said she still can barely afford her bill.
"It's been a little bit difficult maintaining it with the car insurance, the maintenance, and my car loan," Neal said. "I'm usually about 30 days late."
She still hasn't been able to find employment and ended up having to move back in with her parents while she drives for Amazon Flex to make a little bit of money. Still, she estimates she makes only about $100 a day, which isn't enough for all of her bills.
Fitch's findings on missed car payments notably follow two key disruptions in the auto lending space.
"PrimaLend, which serves the 'buy-here-pay-here' auto financing market—where dealers sell and directly finance vehicles for customers with poor or limited credit—filed for bankruptcy protection last month," Reuters reported. "Tricolor, which sold cars and provided auto loans mostly to low-income Hispanic communities in the Southwestern United States, also filed for bankruptcy in September."
In mid-October, the credit score model development company VantageScore released an analysis showing that auto loans "have now evolved from being one of the least risky consumer credit products to one of the loan types most prone to delinquencies," as consumers struggle with rising interest rates, financing costs, and prices of cars, insurance, and repairs.
"Auto loans have not followed the trends of other credit products as delinquencies have been persistently trending up across all credit tiers and income groups over the past 15 years," said VantageScore's chief economist and strategy officer, Rikard Bandebo, in a statement. "Even after the industry tightened lending criteria three years ago, delinquencies have continued to rise."
A few days before the VantageScore analysis, Cox Automotive's Kelley Blue Book announced that in September, the average transaction price (ATP) of a new vehicle in the US had soared above $50,000 for the first time.
"It is important to remember that the new vehicle market is inflationary. Prices go up over time, and today's market is certainly reminding us of that," said Cox Automotive executive analyst Erin Keating last month. "The $20,000 vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used vehicle market. Today's auto market is being driven by wealthier households who have access to capital, good loan rates, and are propping up the higher end of the market."
"Tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of EVs and higher-end vehicles pushing the new vehicle ATP into uncharted territory," she added. "We've been expecting to break through the $50,000 barrier. It was only a matter of time, especially when you consider the bestselling vehicle in America is a pickup truck from Ford that routinely costs north of $65,000. That's today's market, and it is ripe for disruption."
The downturn becomes more evident ...Record number of subprime borrowers miss car loan payments in October, data shows - www.reuters.com/business/aut...
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— Not Born Yesterday (@oatsmint.bsky.social) November 12, 2025 at 4:44 PM
Other recent findings that have shown the economic deterioration under Trump include a Thursday report from Democrats on the congressional Joint Economic Committee (JEC), which found that the average US family is spending around $700 more each month on basic items since Trump returned to office in January.
"As families across the country spend more to pay their bills and put food on the table, Democrats and Republicans should be working together to lower costs," said Sen. Maggie Hassan (D-NH), the JEC’s ranking member. "Instead, President Trump is pushing ahead with reckless tariffs that continue to fuel inflation and drive prices up even higher."
A closely watched University of Michigan survey revealed last week that since October, consumer sentiment has fallen over 6% to 50.3, the second-lowest level since 1978, and the "current economic conditions" index has dropped nearly 11% to an all-time low of 52.3.
Earlier in November, the Washington Post reported on layoff data from corporate outplacement firm Challenger, Gray & Christmas, which documented 153,000 job cuts in October, bringing the total for this year to 1.1 million.
"We haven't seen mega-layoffs of the size that are being discussed now—48,000 from UPS, potentially 30,000 from Amazon—since 2020 and before that, since the recession of 2009," said the firm's CEO, John Challenger. "When you see companies making cuts of this size, it does signal a real shift in direction."
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Economists Call BS on 'Crazy' Trump Tariff Dividend Promise
"If the goal is relief for Americans, just get rid of the tariffs," explained one economist.
Nov 12, 2025
As poll numbers on his handling of the US economy have continued to sink in recent weeks, President Donald Trump has floated sending Americans a $2,000 check that he has claimed will be funded with revenue collected from his tariffs on imported products.
However, economist Dean Baker of the Center for Economic and Policy Research (CEPR) on Tuesday crunched some numbers and found that Trump's proposed tariff "dividend" simply doesn't add up.
In particular, Baker found that the revenue being generated by the tariffs is less than half of the total cost of sending nearly every US citizen a $2,000 check.
"At $2,000 a piece it would come to $600 billion, more than twice what Trump is collecting from us with his import taxes," Baker explained. "Since he's already $330 billion short, how can Trump think he has money to pay down the national debt?"
Baker declared Trump's tariff math "crazy," and then speculated that the president sincerely believes the false claims he's been making about securing $18 trillion in investments from foreign countries. What's more, Baker said that it appears that no one on the president's economic policy team wants to tell him that this belief is purely delusional.
"People like Treasury Secretary Scott Bessent or National Economic Adviser Kevin Hassett may not be brilliant intellects, but they know that Trump does not have trillions of dollars from foreign countries to play with, and that we are still running deficits that would ordinarily be considered very large," he said. "But they are too scared of Donald Trump to explain this to him."
Erica York, vice president of federal tax policy at the Tax Foundation, said in an interview with CNN published on Tuesday that Trump could also reignite inflation by sending out $2,000 checks to everyone, as this would likely increase demand for goods and services without a corresponding increase in supply.
"All of this is exactly the wrong recipe if you want to get inflation under control and make things feel more affordable," she said.
York also said in a separate interview with the Associated Press that it makes little sense to cut Americans a check when one of the main reasons they're paying more for so many products has been the president's tariffs.
"If the goal is relief for Americans, just get rid of the tariffs," she said.
Michael Pearce, deputy chief US economist at Oxford Economics, echoed York's concern about the dividend checks worsening inflation, and he told CNN that the risk with Trump's plan is "if you add a stimulus check on top of a tax cut refund, you're going to overheat the economy."
University of Michigan economist Justin Wolfers was even more blunt in his take on Trump's tariff dividend idea, which he labeled, "insane, unfair, pointless and dumb."
"If tariffs are making Americans poorer," Wolfers told CNN, "the simplest and fairest way to stop that is not to tariff."
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