The New York Times' report confirms what Kevin Hassett, economic adviser to the White House, hinted at on Wednesday: "One of the topics discussed in recent days concerns the possibility of changing tariffs on food and other products. I therefore think that further changes are to be expected."
In an interview with Fox News on Monday, Donald Trump had already opened the door to such measures: "We are going to lower certain tariffs on coffee." It should be noted that the US imports 99% of its coffee, according to the National Coffee Association, with the majority coming from Brazil. Donald Trump has imposed a 50% tariff on this country.
Donald Trump therefore seems to be willing to dilute his stance (or at least his coffee, in this case) on tariffs. Yesterday, an administration official told reporters that the United States plans to reduce certain tariffs as part of trade agreements with four countries: Argentina, Ecuador, Guatemala, and El Salvador. These deals should lead to lower prices for coffee and bananas, amongst other things.
Housing and healthcare as priorities
Beyond food prices, Donald Trump wants to lower the cost of housing and healthcare. Regarding the former, one measure has been proposed: the introduction of 50-year mortgages, presented as a solution to make home ownership more affordable than traditional 30-year mortgages. Mechanically, this would effectively lower monthly payments.
However, borrowers will ultimately pay more interest: this idea is not unanimously supported within the Republican camp: "In debt forever, in debt for life!" was the reaction of Representative Marjorie Taylor Greene.
As analysts at TD Securities point out, this measure would only work if there were a simultaneous increase in the supply of housing. Without this, 50-year loans could drive up prices (by stimulating demand for loans) and further deter some buyers from entering the housing market altogether. The real problem in the United States is one of supply: too few homes are being built each year to keep pace with population growth.
Next, Donald Trump wants to tackle healthcare costs. In recent weeks, several agreements have been signed with pharmaceutical companies to lower the price of certain drugs. This will be notably achieved through direct sales on the website TrumpRx, which has been specially created for this purpose.
However, the scope of these measures remains limited and is unlikely to compensate for the end of subsidies under the Affordable Care Act (ACA). Despite the shutdown, Republicans have refused to extend these measures, as desired by Democrats. As a result, health insurance premiums will increase for the 24 million low-income Americans who benefited from the ACA.
A majority to be retained in 2026
This brings us back to the observation we often make about Donald Trump: he identifies real problems, but does not necessarily provide good solutions for them. He is right to tackle the cost of food, healthcare and housing. Although neither tariffs, nor the end of Affordable Care Act subsidies, nor the deportation of one million people per year (which will penalize many sectors, including construction) will bring prices down.
The challenge for this administration is now to take measures that are visible to Americans in their everyday purchases. Because while Donald Trump often talks about inflation falling from its peak of 9% under Joe Biden, prices continue to rise.
Hence the idea of a $2,000 dividend, derived from customs duties, paid directly to Americans.
This flurry of measures aimed at boosting Americans' purchasing power comes on the heels of a series of electoral setbacks suffered by Republicans last week.
This is a backlash for Donald Trump, whose 2024 campaign denouned "Biden's inflation", and is a warning one year before the midterm elections.
The US president is well aware of how important this issue is for him. "We will continue our work to lower the cost of living, restore public safety, grow our economy and make America affordable again," he said Wednesday evening in the Oval Office, as he signed the bill ending the shutdown.
