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Trump to ease coffee and banana tariffs in Latin America trade deals

November 13, 2025

The Trump administration announced trade agreements with Argentina, Guatemala, El Salvador, and Ecuador that will reduce import taxes on coffee and bananas, products that cannot be sufficiently produced domestically. These deals maintain reciprocal tariffs of 10-15% on most goods from these countries while exempting certain agricultural products, following political pressure after poor Republican election results and rising consumer prices. The agreements are part of ongoing negotiations that began after Trump imposed sweeping tariffs in April, which caused global financial concerns and were subsequently modified.

Who is affected

  • US consumers purchasing coffee, bananas, and other imported products
  • Coffee and banana importers and retailers in the United States
  • Beef producers in Argentina and the United States
  • Exporters in Argentina, Guatemala, El Salvador, and Ecuador
  • The Trump administration and Republican Party
  • Meat-packing companies under Justice Department investigation
  • Treasury Secretary Scott Bessent

What action is being taken

  • The Trump administration is implementing trade deals with four Latin American countries that lower tariffs on specific products
  • A reciprocal tariff of 10% is staying in place for Guatemala, Argentina, and El Salvador
  • A 15% tax is staying in place for Ecuador
  • Products like coffee that cannot be produced domestically in sufficient quantities are being exempted from tariffs
  • The Justice Department is investigating meat-packing companies over their potential role in rising beef prices

Why it matters

  • This matters because rising consumer prices, particularly for everyday items like coffee and beef, have become significant political liabilities for the Trump administration following poor Republican performance in recent off-year elections. The tariff relief represents an acknowledgment that trade policies have contributed to affordability concerns, which Trump previously dismissed as a political "con job." These agreements also reflect the administration's broader strategy of using tariff negotiations as leverage while attempting to balance protectionist policies with consumer cost pressures that could affect electoral prospects.

What's next

  • The four trade agreements are expected to be signed within the next two weeks
  • Prices for coffee, bananas, and other exempted products may fall if retailers and wholesalers pass savings to consumers
  • The US and Argentina are working to improve reciprocal bilateral market access conditions for beef trade

Read full article from source: BBC