US Eliminates Tariffs on Food Imports from Four Latin American Nations to Lower Consumer Prices

The United States announced Thursday it will eliminate tariffs on select food products and other imports from Argentina, Ecuador, Guatemala, and El Salvador through framework agreements that will simultaneously expand market access for American businesses in these countries.

These agreements are anticipated to reduce prices for various food items including coffee and bananas, according to a senior Trump administration official who briefed reporters. The administration expects American retailers will pass these savings directly to consumers.

Most framework deals with the four nations should be completed within two weeks, with additional agreements potentially finalized before year-end.

Treasury Secretary Scott Bessent indicated on Wednesday that "substantial" announcements were imminent that would lower prices on coffee, bananas, and other fruits as part of the administration's broader initiative to reduce living costs for Americans.

Meanwhile, Secretary of State Marco Rubio and Brazilian Foreign Minister Mauro Vieira discussed establishing a framework for US-Brazil trade relations during recent meetings. This is particularly significant as Brazil, the world's largest coffee producer and exporter, currently faces 50% duties on exports to the United States imposed by President Trump.

The affordability issue has gained prominence following Republican defeats in recent elections across New Jersey, New York, and Virginia, where cost-of-living concerns influenced voter decisions. Economic analysts note that import tariffs implemented by Trump on numerous countries have contributed to price increases.

According to The New York Times, the administration is considering additional tariff exemptions on imported food products such as beef and citrus from countries without formal trade agreements with the United States.

US officials described ongoing discussions with other Central and South American nations as "quite constructive," suggesting more trade deals could be announced this year. Recent trade talks with Switzerland and Taiwan were also characterized as positive.

Officials from Argentina, El Salvador, Guatemala, and Ecuador have welcomed these agreements.

Under the framework deals, 10% tariffs will remain on most imports from El Salvador, Guatemala, and Argentina—countries with which the US maintains modest trade surpluses. For Ecuador, where the US has a trade deficit, a 15% tariff will continue on most goods.

However, the agreements will remove US tariffs on products not grown, mined, or manufactured in the United States, such as Ecuadorian bananas and coffee.

These agreements, similar to those previously announced with Asian countries, include commitments preventing digital services taxes on US companies and remove tariffs on US agricultural and industrial exports.

The senior administration official emphasized, "With all of these deals, the ones in Asia, the ones we're announcing today, we maintain the tariffs, we give some tariff relief on certain products or goods, but at the same time, we open up foreign markets in ways that they have not been open before."

Argentine Foreign Minister Pablo Quirno stated the framework would create favorable conditions for increased US investment in Argentina, crediting President Javier Milei's conviction regarding the agreement.

El Salvador President Nayib Bukele shared the announcement on social media with the caption "friends," while his ambassador in Washington, Milena Mayorga, celebrated the strengthened bilateral relationship "built on trust and self-determination."

Guatemalan President Bernardo Arevalo welcomed the development as beneficial for Guatemala's economy, stating the agreement "places us as an even more competitive and more attractive country for investment."

Ecuador's government under President Daniel Noboa, who has closely aligned with the Trump administration on anti-narcotics and migration initiatives, expressed enthusiasm for the deal, noting it would strengthen the country's export sector, particularly for key products like bananas and shrimp.