The US tariff on Swiss goods will be cut from 39 per cent to 15 per cent, while the White House said Switzerland and Liechtenstein would invest at least $US200 billion ($306 billion) in the US.
These revisions come as Trump faces pressure from voters – as well as from the Republican Party – to address Americans’ concerns about affordability, which was one of his campaign pledges at last year’s election.
Trump has been under pressure over the rising cost of groceries, despite his claim that groceries are “way down” in price.Credit: AP
Trump has rejected the idea that tariffs are contributing to price increases, and as recently as last week said he did not want to hear complaints about affordability because “everything is down”.
However, grocery prices have continued to rise roughly in line with inflation, which has ticked up to 3 per cent over the course of 2025.
Trump identified beef as a particular concern during an interview with Fox News this week. “The only thing is beef. Beef is a little high [in price] because the ranchers are doing good,” he said.
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“Coffee, we’re going to lower some tariffs, we’re going to have some coffee come in. We’re going to take care of all this stuff very quickly, very easily. It’s surgical, it’s beautiful to watch.”
A pound of ground beef has increased from $US5.67 to $US6.33 over the 12 months to September – an increase of 13.5 per cent – the US Bureau of Labour Statistics says.
American farmers are seeking clarification from the Trump administration about the country-specific tariff on Brazilian beef, which applied a 40 per cent levy above the baseline 10 per cent tariff applied to all countries.
Brazil had previously rivalled Australia as the biggest US supplier and lowering of its steep tariffs could eat into Australia’s market share, which has been rising despite Trump’s tariffs.
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However, agriculture sector consultant Patrick Hutchison, of Gibraltar Strategic Advisory, said US consumer appetite for red meat was growing and because local farmers could not fill the demand, the outlook for Australian exports would remain strong.
“With the 10 per cent tariff being removed from everybody, that just means that everyone’s back to where they were and for Australian producers, I think that you will just see business as usual,” Hutchison said.
US beef producers have battled successive seasons with below-average rainfalls and the size of the national herd is shrinking.
Rabobank senior animal proteins analyst Angus Gidley-Baird said this meant US reliance on imports had remained strong despite the tariffs and lifting them would not significantly impact the market for Australian imports.
“The US demand for beef is so strong at the moment that prices will continue to be good for Australian products,” Gidley-Baird said.
Even if the US lifted its tariffs on Brazil it would only result in a “a little bit of trimming around the edges” of prices for Australian exports, he said.
Last week’s elections, in which Democrats won gubernatorial races in Virginia and New Jersey, and had successes elsewhere, have turbocharged concerns that cost-of-living is becoming a major weakness for Republicans.
Senior figures in the administration have conceded there is an issue. Trump’s trade and manufacturing adviser Peter Navarro, a strong proponent of tariffs, told News Nation there had to be an honest public debate “so that people can have hope about the trajectory that we’re moving in”.
Navarro said he was meeting with a taskforce once a week in the White House Roosevelt Room to formulate “an attack plan to deal with beef prices”.
In a statement, the White House said grocery prices were trending in the right direction and some staples were coming down in price.
“The Trump administration will not rest until the high prices that resulted from Democrat policies are fully reined in,” it said. “We’re making progress, and the best is yet to come.”
The office of the US Trade Representative was contacted for comment.
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