On Thursday, the Trump administration announced a framework for trade agreements with four Latin American countries—Argentina, Guatemala, El Salvador, and Ecuador. These agreements will involve lowering import taxes on coffee and bananas as part of efforts to ease economic concerns in the U.S. The measures come in response to ongoing scrutiny over the economy and affordability issues.
As part of the new arrangements, Guatemala, Argentina, and El Salvador will maintain a reciprocal 10% tariff on their exports to the U.S., while a 15% tariff will continue on imports from Ecuador. However, products that cannot be produced in sufficient quantities in the U.S., including coffee, will be exempt from these tariffs. Additionally, the deal with Argentina will focus on enhancing beef producers’ access to foreign markets.
Concerns about the cost of living have gained traction, especially following the Republican Party’s less favorable performance in recent elections. President Trump had previously downplayed affordability issues but has since shifted focus to the topic with urgency. He and Treasury Secretary Scott Bessent have committed to reducing coffee prices, which have increased by approximately 20% in the U.S. this year, and suggested that tariff relief could extend to bananas and other fruits.
Senior administration officials indicated that coffee, cocoa, and bananas are key imports from these Latin American nations poised to benefit from tariff reductions. Notably, Guatemala and Ecuador are the leading banana exporters to the U.S., while Brazil remains the top coffee exporter, which is not included in the current agreements.
Furthermore, rising beef prices have become a significant political issue, leading Trump to request an investigation into meat-packing companies’ potential role in these increases. The agreements with the four countries are expected to be finalized within the next two weeks, building on previous trade discussions that had been postponed due to global economic concerns.
Source: https://www.bbc.com/news/articles/cvg7jm046e4o?at_medium=RSS&at_campaign=rss