Price of coffee and other groceries set to drop with ‘substantial announcements’ coming in days, Trump official says

Americans will see "substantial announcements" aimed at lowering the prices of products like coffee, bananas and other items not grown in the U.S. in the coming days, according to U.S. Treasury Secretary Scott Bessent.

Bessent told Fox News that the announcements would bring down prices "very quickly," though he did not outline what the changes will be.

He said people would start feeling better about the economy in the first half of 2026.

Coffee prices fell sharply Wednesday amid signs that the U.S. will cut selected import tariffs, potentially easing supply tightness in the world's top consuming country.

President Donald Trump and other top officials have focused on reducing the cost of living after a string of defeats for Republican candidates in last week's elections, where Democrats made affordability a key issue.

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Democratic wins in New Jersey, New York and Virginia, driven in part by cost-of-living concerns, showed voters are concerned by ongoing inflation, which economists say has been fueled in part by high import tariffs imposed by Trump.

After the election defeats, Trump once again floated the prospect of giving households rebate checks funded by tariffs, and the idea of a 50-year mortgage.

Bessent, asked about those ideas, said a $2,000 rebate check proposed by Trump would be for those earning less than $100,000 per year, but no decisions had been made. "It's in discussion," he said.

White House spokeswoman Karoline Leavitt separately said tariff revenues could "perhaps" be used for "rebate checks" in addition to paying down the nation's debt, telling reporters: "The White House is exploring the legal options of how we can get that done."

Bessent did not address the 50-year mortgage idea, which has led to a backlash from conservative allies, business leaders and lawmakers, who have questioned the efficacy of such a plan.

"It's something that the administration is discussing and seriously looking into," Leavitt told reporters.

White House economic adviser Kevin Hassett, in remarks to the Economic Club of Washington, said he did not know if Trump had made a final decision on offering the longer home loan.

Trump, in an interview aired on Fox News Tuesday, said the U.S. would lower some tariffs on coffee imports, repeating comments he first made in late October during his trip to Asia.

Coffee roasters in the U.S. have been plowing through their stockpiles as they await the outcome of ongoing U.S.-Brazil trade negotiations. Brazilian coffee, which accounts for a third of the beans consumed in the U.S., has been priced out of that market by the 50% import tariffs that Trump imposed in August.

Asked about Trump's comments about lowering tariffs on coffee producers Vietnam and Brazil, Bessent said, "It's tough to do a lot of specific things, but I can tell you ... you're going to see some specific announcements in coming days in terms of things we don't grow here in the United States, coffee, coffee being one of them, bananas, other fruits, things like that." He gave no further details.

The U.S. grows bananas in Hawaii and Florida. But commercial production is limited and most bananas are imported from countries where labor is cheaper and land costs are lower.

Hassett said there have been talks about "changing tariffs for foodstuffs" but gave no details.

Bessent said other measures already taken by the Trump administration, including reducing taxes on overtime and tips, would kick in early next year, as well as moves to boost domestic manufacturing through foreign investment.

"Real wages are going to increase," Bessent said. "I would expect in the first quarter, second quarter of next year .... Americans are going to start feeling better."

Many households will see large tax refunds next year given changes in tax law, allowing deductions for car loans and ending taxes on Social Security benefits for some seniors. Parents of children born after December 31, 2024 and before January 1, 2029 could also receive a $1,000 initial deposit if they opened a Trump account, Bessent said.