**White House Announces New Reciprocal Trade Agreements with Latin American Nations to Reduce Tariffs on Coffee, Bananas, and More**
The White House has unveiled new framework agreements with Argentina, Guatemala, El Salvador, and Ecuador aimed at reducing tariffs on a range of imported goods that the U.S. does not produce in sufficient quantities domestically. These reciprocal trade agreements are designed to lower costs on essential imports such as coffee, chocolate, and bananas, helping to ease inflation pressures that have recently driven up consumer prices.
### What Are the New Reciprocal Trade Agreements?
Reciprocal trade agreements involve the United States reducing tariffs on imports from partner countries in exchange for mutual benefits, including increased U.S. exports and reduced trade barriers. On Thursday, officials announced framework deals with Argentina, Guatemala, El Salvador, and Ecuador targeting shortages in domestically produced goods.
Although the announcement detailed the goal of curbing rising consumer costs, no specific implementation dates or quantifiable relief estimates were provided at this time.
### Impact on Coffee and Banana Prices
According to the September 2025 Consumer Price Index, coffee prices rose by 18.9% over the past year, bananas increased by 6.9%, and beef prices climbed 14.7%. Tariffs have contributed to these price hikes.
The National Coffee Association reports that 99% of the coffee consumed in the U.S. is imported, predominantly from Brazil. However, Brazil has faced a steep 50% tariff imposed during the Trump administration, triggered by a criminal case against former President Jair Bolsonaro. Colombia, another key coffee supplier, is subject to a 10% tariff.
These new agreements seek to ease such pressures by lowering reciprocal tariffs, potentially stabilizing supply chains and making coffee and other staple imports more affordable.
### Boosting Textile Exports under DR-CAFTA
In addition to food products, the agreements include provisions to eliminate reciprocal duties on clothing and textiles imported from El Salvador and Guatemala under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA).
According to a White House fact sheet, removing these duties will stimulate the growth of textile and clothing supply chains, fostering economic expansion in these countries. This benefits U.S. farmers, ranchers, fishers, small businesses, and manufacturers by broadening export opportunities.
Importantly, El Salvador has reinforced its commitment to upholding internationally recognized labor rights. The country will prohibit the importation of goods produced using forced or coerced labor, as outlined in the joint U.S.-El Salvador trade framework.
### Key Items Covered in the Agreements
The reciprocal trade agreements specifically address tariffs on:
– Coffee
– Chocolate
– Bananas
– Certain natural resources
– Non-patented pharmaceutical articles from Argentina
Furthermore, the agreements promote fair labor practices and ban imports made with forced labor, particularly concerning textile and clothing goods from El Salvador and Guatemala.
### Tariff Reductions and Remaining Duties
It is important to note that the 10% reciprocal tariff rate imposed on Guatemala, El Salvador, and Ecuador on “Liberation Day” in April remains in place. Ecuador’s 15% duty is also unchanged.
These frameworks focus on targeted tariff reductions for specific goods, with full agreements expected to be signed and made public within the next two weeks, according to U.S. Trade Representative Jamieson Greer.
Guatemala and El Salvador already provide substantial duty-free access to U.S. goods, strengthening the mutual benefits of these arrangements.
### Broader Trade Negotiations and Global Context
The latest framework agreements follow similar deals announced during the administration’s recent trips to Asia, including reciprocal trade frameworks involving Malaysia, Cambodia, Vietnam, and Thailand.
The Trump administration is also engaged in ongoing negotiations with Switzerland, which currently holds a $55.7 billion trade surplus with the U.S. in 2025. These talks aim to reduce and potentially eliminate this surplus through tariff and non-tariff barrier reductions.
### Key Takeaways
– **Tariff Reductions on Essential Imports:** Reciprocal trade agreements with Argentina, Guatemala, El Salvador, and Ecuador target reductions in tariffs on coffee, chocolate, bananas, and other goods to help counter recent steep price increases.
– **Expansion of U.S. Exports:** Agreements enhance access for U.S. farmers, manufacturers, and small businesses in textiles and resources, while promoting labor rights in partner countries.
– **Ongoing Negotiations:** Similar frameworks continue with other global partners, including Switzerland, as the U.S. works to balance trade dynamics internationally.
### Conclusion
The White House’s new reciprocal trade agreements signify a strategic effort to rebalance global trade by lowering import tariffs on critical goods like coffee and bananas while strengthening textile supply chains under DR-CAFTA. Upholding rigorous labor standards and expanding export markets support both U.S. economic interests and partner country prosperity.
As negotiations with Switzerland and other nations advance, businesses and consumers can anticipate greater price stability and enhanced opportunities in the evolving global trade landscape. Stay tuned for updates on the implementation timeline and detailed impacts of these agreements.
—
*For further information and official updates on these trade agreements, monitor upcoming White House releases and statements from the U.S. Trade Representative’s office.*
https://bitcoinethereumnews.com/tech/white-house-frameworks-with-latin-nations-may-ease-coffee-banana-import-costs/
