The Trump administration on Thursday reached framework trade deals with four Latin American countries — Argentina, Ecuador, El Salvador and Guatemala — to lower the prices of household goods such as coffee, cocoa and bananas.
A senior administration official said the deals will be finalized within the next two weeks. The tariff rates on goods from those countries that cannot be naturally produced in the U.S. could change once the deals are finalized.
Currently, the U.S. imposes a 15% tariff on imports from Ecuador and 10% on Argentina, Guatemala and El Salvador. The official said those baseline rates will remain in effect, but could be lowered or dropped altogether on certain goods.
“We may reduce the tariffs on a list of items,” the official said. “Some of these items are the type that we don’t grow or procure here in the United States. So you will see, for example, Ecuador, you know, bananas, that’s something they shipped to us and they want to ship to. So we expect the tariffs to come off bananas.”
The deals also include potentially lowering or eliminating tariffs for U.S. goods in critical sectors such as machinery and chemicals, in addition to agricultural products. In addition, the countries will improve the U.S. market access for beef, said the official.
U.S. Treasury Scott Bessent hinted at the deals Wednesday, saying the Trump administration has plans in the works to help lower the cost of household items such as coffee and bananas.
“You’re going to see some substantial announcements over the next couple days for things we don’t grow here in the U.S.,” Mr. Bessent said on Fox News.
The deals are part of Mr. Trump’s big bet on Latin American countries. The U.S. last month provided $20 billion to Argentina and purchased pesos to help keep its economy afloat and help President Javier Milei’s party ahead of his country’s midterm elections.
Mr. Milei is a close ideological ally of Mr. Trump.
The deals also help ease cattle trade as Mr. Trump seeks to bring down wholesale beef prices, which have surged as herds have been reduced to their lowest levels in decades and following a bruising off-year election in which Democrats scored victories campaigning on affordability.
The price of ground coffee was up 41% in September compared to the same period last year, and banana prices are 5.4% higher since Mr. Trump announced tariffs on virtually all of America’s trading partners.
Critics argue that Mr. Trump’s tariffs are raising prices, and Mr. Trump’s willingness to lower tariffs or outright eliminate them is proof that tariffs are responsible.
