The Trump administration has announced framework agreements with Argentina, Ecuador, El Salvador and Guatemala to lower tariffs on some food imports, including beef, bananas and coffee beans, amid rising concerns over the higher cost of grocery items in the US.
The trade deals are expected to be finalised and signed in the coming weeks, the White House said in a statement on 13 November.
“These deals secure commitments on economic and national security issues to strengthen supply chains and trade partnerships in the region,” the White House said.
“The United States will also give Most Favored Nation (MFN)-tariff treatment for certain originating goods from these countries that cannot be grown, mined, or naturally produced in the US in sufficient quantities,” it added.
Key elements of the framework agreements include maintaining US President Donald Trump’s 10% baseline tariff on most goods from Argentina, El Salvador and Guatemala and 15% for imports from Ecuador, Reuters reported.
In April, Trump invoked the Emergency Economic Powers Act (IEEPA) after declaring that the US trade deficit constituted a national emergency, saying it allowed him to impose his “Liberation Day” tariffs against more than 90 countries as part of his “America First” policy that aims to boost US manufacturing.
After months of multiple reversals, the tariffs – ranging from 10% to 50% – came into effect on 7 August. To pay for the tariffs, businesses that import goods into the US have increased prices on a range of goods, leading to criticism that Trump has broken a campaign promise that inflation would fall and prices would come down.
“The frameworks announced with Argentina, Ecuador, Guatemala and El Salvador to lower the tariffs imposed on key foods, which are unavailable in the US, are a positive step for trade and the American consumer,” according to Ruth Benbow, Navigator Global’s ecosystem development director for North America.
“However, Brazil, as the world’s largest producer of coffee, is notably absent from this list and continues to face a high base tariff of 50%,” Benbow says.
Brazil exports 85% of its coffee production annually, with the US accounting for about 16% of that total, according to Cecafe, the country’s coffee exporters council.
According to a 30 July White House statement, Trump’s 50% levy on Brazil is in retaliation for the prosecution of former Brazilian president Jair Bolsonaro, a right-wing ally of the US president.
Benbow says businesses should expect heightened compliance checks at US borders after the trade agreements are signed with Argentina, Ecuador, El Salvador and Guatemala.
“US customs authorities will be closely looking for transshipment or mislabelling of origin for these goods, given the divergence of tariff rates across the region,” she adds.
Trump’s IEEPA levies are being challenged in the Supreme Court, which heard oral arguments on 5 November that the president lacks the legal authority to issue global tariffs without congressional approval.
The Supreme Court has until the end of its current term in July 2026 to issue a ruling on the case.
Meanwhile, trade talks between the US and Switzerland to reduce the 39% tariff on Swiss imports, including watches and chocolate, are continuing.