US Announces Frameworks for Trade Deals with Argentina, Guatemala, El Salvador, and Ecuador Including Tariff Relief on Coffee and Bananas
The United States has announced frameworks for trade deals with Argentina, Guatemala, El Salvador, and Ecuador that include tariff relief on key imports such as coffee and bananas.
Under these agreements, a 10% reciprocal tariff will remain for Guatemala, Argentina, and El Salvador, while Ecuador will have a 15% tariff. However, exemptions apply for products that are not producible in sufficient quantities within the US, including coffee.
The US-Argentina framework specifically includes improved reciprocal market access for beef.
These trade deals have been politically framed around affordability, with former President Trump and aides vowing to lower coffee prices. The Treasury Secretary also signaled potential tariff relief on bananas and other fruits.
Coffee, cocoa, and bananas were singled out as imports likely to escape tariffs under the agreements. Guatemala and Ecuador are major banana exporters to the US, while Brazil remains the top coffee exporter to the US but is not covered by these new deals. Weather pressures on coffee and cacao prices were cited as factors, with potential relief if tariff savings are passed to consumers.
The four agreements are expected to be signed within two weeks and are part of a broader US tariff strategy following announcements and updates in April and August. Recent trade deals have also been reached with the EU, South Korea, Japan, Cambodia, Thailand, and Malaysia.
