US Moves Towards Tariff Relief on Coffee and Bananas in Latin American Trade Deals
Four Latin American countries—Argentina, Guatemala, El Salvador, and Ecuador—have established frameworks for US trade deals that include tariff relief specifically targeting coffee and bananas.
Under these agreements, a 10% reciprocal tariff remains on goods from Guatemala, Argentina, and El Salvador, while a 15% tariff applies to imports from Ecuador. However, exemptions are in place for products insufficiently produced in the US, such as coffee.
Coffee and bananas are singled out for tariff relief because Guatemala and Ecuador are the largest US banana exporters, and although Brazil is the top coffee exporter to the US, it is not included in these deals.
The US-Argentina framework also addresses beef market access and aims to improve reciprocal bilateral access overseas.
These four trade agreements are expected to be signed within the next two weeks.
This move comes as President Trump faces scrutiny over affordability issues. Treasury official Scott Bessent indicated relief on tariffs for bananas and other fruits, aligning with Trump's emphasis on lowering coffee prices.
Coffee prices in the US have increased about 20% this year, with weather impacting prices for coffee and cacao negatively. Relief is hoped for if tariffs are eased and savings are passed on to consumers.
These developments follow a broader tariff policy announced in April, including August updates and recent trade deals with the EU, South Korea, Japan, Cambodia, Thailand, and Malaysia.
