The Trump administration outlined new trade frameworks with four Latin American countries on Thursday, which include targeted tariff reductions on coffee and bananas. Officials say this move is intended to ease pressure on consumers facing stubbornly high grocery costs.
The agreements with Argentina, Guatemala, El Salvador, and Ecuador preserve the reciprocal tariff structure introduced earlier this year, which includes a 10% rate on goods from Guatemala, Argentina, and El Salvador, and a 15% rate on imports from Ecuador. But under the new framework, products that the US cannot produce in sufficient quantities will be exempt from those taxes. Coffee, cocoa, and bananas fall into that category, removing fees that retailers and importers say have contributed to rising prices.
The decision comes as President Donald Trump confronts growing scrutiny over economic management and affordability, particularly after his party’s poor performance in last week’s off-year elections. Coffee prices in the US have risen by roughly 20% this year, and administration officials said that easing tariffs should help temper those increases if the savings are passed along the supply chain. Severe weather has also tightened global supplies of coffee and cacao, adding to cost pressures.
Guatemala and Ecuador are the largest banana suppliers to the US, and officials said tariff relief could support more consistent imports. While Central American producers send significant volumes of coffee to American buyers, Brazil — not included in the agreements — remains the top exporter.
The US-Argentina framework also includes provisions aimed at improving access to foreign markets for American beef producers. Beef prices have surged in recent months, prompting Trump to call for a Justice Department investigation into the meat-packing industry and seek policy changes that do not alienate ranchers or consumers.
The four agreements are expected to be finalized within two weeks. They follow a series of international deals struck in recent weeks as the administration works to stabilize trade relationships disrupted by sweeping tariff announcements in April and subsequent rate changes introduced in August.
Source: Fox Business