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US reduces import taxes on key goods from Latin America
The Trump administration announced Thursday it will lower tariffs on coffee, bananas, and other agricultural imports from four Latin American nations-Argentina, Guatemala, El Salvador, and Ecuador-as part of newly negotiated trade agreements. The move comes amid growing political pressure over rising consumer costs and economic concerns.
Tariff adjustments and exemptions
A 10% reciprocal tariff will remain on most goods from Guatemala, Argentina, and El Salvador, while Ecuador's imports will continue to face a 15% tax. However, the deals will exempt products deemed unavailable in sufficient domestic supply, including coffee-a major import from the region.
The US-Argentina agreement also includes provisions to expand market access for American beef producers, addressing another politically sensitive commodity.
Political context and price pressures
The administration's focus on affordability follows Republican setbacks in recent state elections, where economic concerns played a key role. President Donald Trump, who previously dismissed cost-of-living issues as a "con job" by Democrats, has since prioritized measures to lower prices, including a 20% surge in US coffee costs this year.
Senior officials highlighted coffee, cocoa, and bananas-key exports from Guatemala and Ecuador, the top banana suppliers to the US-as beneficiaries of the tariff relief. While Brazil remains the largest coffee exporter to the US, Central American producers will gain from the reduced duties.
Broader trade strategy
These agreements follow Trump's April announcement of sweeping tariffs on dozens of countries, later adjusted after global financial backlash. The administration has since finalized similar deals with the EU, South Korea, Japan, Cambodia, Thailand, and Malaysia.
Officials acknowledged that severe weather has also driven up coffee and cocoa prices but expressed hope that tariff reductions would ease costs if retailers pass savings to consumers. The four Latin American deals are expected to be signed within two weeks.
Beef market tensions
Separately, the US and Argentina agreed to improve bilateral beef trade access, a politically charged issue after Trump ordered a Justice Department probe into meat-packing companies over alleged price manipulation. Earlier proposals to lower beef prices had faced opposition from ranchers.
"The two countries have committed to improved, reciprocal, bilateral market access conditions for trade in beef."
White House joint statement
