The Trump administration said on Thursday that it will lower import taxes on coffee and bananas under new trade agreements with Argentina, Guatemala, El Salvador and Ecuador. The announcements come as President Donald Trump faces scrutiny over affordability concerns and pressure surrounding his handling of the economy.
Under the initial framework, reciprocal tariffs of 10% will remain on goods from Guatemala, Argentina and El Salvador, while a 15% tariff will stay on imports from Ecuador. However, the agreements will exempt products that the U.S. does not produce “in sufficient quantities,” including coffee. Senior administration officials also pointed to cocoa and bananas as examples of goods set to avoid tariffs under the deals. Guatemala and Ecuador are the largest suppliers of bananas to the U.S.
The administration said the U.S.-Argentina agreement also addresses beef producers’ access to foreign markets. In a joint statement outlining the framework, both governments said they “have committed to improved, reciprocal, bilateral market access conditions for trade in beef.”
The policy shift comes after months of tension over rising consumer prices. Coffee prices in the U.S. have increased by about 20% this year, driven in part by severe weather affecting coffee and cacao production, officials said. The administration noted that prices could ease if vendors pass through savings from reduced tariffs.
Trump recently minimized concerns about the cost of living, describing affordability as a “con job,” but the issue has gained urgency after weak Republican results in off-year elections last week. This week, Trump and Treasury Secretary Scott Bessent pledged to bring down coffee prices and suggested tariffs on bananas and other fruits would also be reduced.
While the U.S. imports coffee from several Central American countries, the Agriculture Department notes that Brazil — not covered by the agreements — remains the largest coffee exporter to the U.S.
The four deals are expected to be signed within two weeks. They follow trade measures introduced earlier in the year, when the administration unveiled broad tariff increases on dozens of countries. Many of those increases were paused after global market reactions, although new tariffs for various countries were put in place in August after additional negotiations.
Recent weeks have seen the administration reach new agreements with the European Union, South Korea, Japan, Cambodia, Thailand and Malaysia. The broader tariff strategy includes higher rates for countries the administration has labeled “worst offenders” in response to what it describes as unfair trade practices.
Beef prices have also emerged as a political pressure point for Trump. Last week, he asked the Justice Department to investigate potential price manipulation by meat-packing firms, after earlier proposals to reduce beef prices drew criticism from ranchers.
Featured image credits: Freepik
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