White House Frameworks with Latin Nations May Ease Coffee, Banana Import Costs

• Coffee, a major import comprising 99% of US consumption, faces reduced tariffs from high duties on suppliers like Brazil (50%) and Colombia (10%), following an 18.9% price surge last year.

• Banana prices rose 6.9% annually, with agreements targeting domestic production shortfalls to ease inflation pressures.

• Textile duties under DR-CAFTA will be eliminated for El Salvador and Guatemala, boosting supply chains and US exports while upholding labor rights standards.

Discover how new US reciprocal trade agreements with Latin American nations are tackling import tariffs on coffee, bananas, and more. Learn impacts on prices and economies—stay informed on global trade shifts today.

What are the new reciprocal trade agreements announced by the White House?

Reciprocal trade agreements involve the US reducing tariffs on essential imports from partner countries in exchange for mutual benefits like increased exports and barrier reductions. On Thursday, the White House outlined framework deals with Argentina, Guatemala, El Salvador, and Ecuador to address shortages in domestically produced goods such as coffee, chocolate, and bananas. Officials aim to curb rising consumer costs, though no specific implementation dates or relief estimates were provided.

How do these agreements impact coffee and banana prices?

The September 2025 Consumer Price Index indicates coffee prices climbed 18.9% over the past year, bananas 6.9%, and beef 14.7%, driven partly by tariffs. The National Coffee Association notes that 99% of US coffee is imported, primarily from Brazil, which faced a 50% tariff imposed by the Trump administration over a criminal case against former President Jair Bolsonaro. Colombia, another key supplier, endures a 10% duty. These new agreements seek to mitigate such pressures by lowering reciprocal tariffs, potentially stabilizing supply chains. According to the White House fact sheet, the deals will enhance textile and clothing exports from El Salvador and Guatemala under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), fostering economic growth in those nations while benefiting US farmers, ranchers, fishers, small businesses, and manufacturers through expanded market access.

Frequently Asked Questions

What specific items are covered under the US reciprocal trade agreements with Argentina, Guatemala, El Salvador, and Ecuador?

The agreements target tariffs on imported coffee, chocolate, bananas, and certain natural resources, as well as non-patented pharmaceutical articles from Argentina. They eliminate reciprocal duties on clothing and textiles from El Salvador and Guatemala, promoting fair labor practices by banning imports made with forced labor, as outlined in the joint US-El Salvador statement.

Will the recent tariffs on these countries be fully removed?

No, a 10% reciprocal tariff rate from April’s “Liberation Day” remains on Guatemala, El Salvador, and Ecuador, while Ecuador’s 15% duty is unchanged. The frameworks focus on targeted reductions for specific goods, with full agreements expected to be signed and publicized in the next two weeks, according to U.S. Trade Representative Jamieson Greer. Guatemala and El Salvador already provide substantial duty-free access to US goods.

Key Takeaways

• Tariff Reductions on Essentials: Deals with four Latin American countries aim to lower costs for coffee, chocolate, and bananas by addressing US production gaps, countering recent price hikes like 18.9% for coffee.
• Boost to US Exports: Agreements expand opportunities for American farmers and manufacturers in textiles and resources, while partners commit to labor rights and reduced barriers.
• Ongoing Negotiations: Similar frameworks follow Asia trips, with Switzerland in talks to cut its $55.7 billion 2025 trade surplus through tariff and non-tariff reductions.

Conclusion

The White House’s reciprocal trade agreements with Argentina, Guatemala, El Salvador, and Ecuador mark a strategic step toward balancing global trade dynamics, reducing import tariffs on vital goods like coffee and bananas, and strengthening textile supply chains under DR-CAFTA. By upholding labor standards and enhancing export markets, these frameworks support US economic interests and partner prosperity. As negotiations with countries like Switzerland progress to address surpluses, businesses and consumers can anticipate more stable pricing and opportunities in the evolving international landscape—monitor updates for implementation details.

On Thursday, the White House announced new framework agreements with Argentina, Guatemala, El Salvador, and Ecuador to reduce tariffs on a number of imported items that the U.S. is unable to produce domestically in large enough quantities.

U.S. officials stated that the action is intended to reduce costs on coffee, chocolate, and bananas. Notably, the officials did not provide a date or an estimate of the amount of relief consumers would get.

White House announces reciprocal trade deals

The September 2025 Consumer Price Index shows that during the previous year, coffee prices increased by 18.9%, banana prices increased by 6.9%, and beef prices increased by 14.7%.

The National Coffee Association reports that 99% of the coffee consumed in the U.S. is imported, much of it coming from Brazil. Trump imposed a high 50% tax on Brazil throughout the summer, citing the country’s criminal case against former President Jair Bolsonaro. Colombia, a major exporter of coffee, is subject to a 10% duty.

According to the US Today news outlet, Trump and his associates have attributed price increases to the Biden administration’s expenditures.

According to White House fact sheet, the agreements call for Washington to eliminate reciprocal duties on clothing and textile goods from El Salvador and Guatemala, originating under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). The fact sheet claimed that the elimination of reciprocal duties will boost the boom of textile and clothing supply chains.

Additionally, the U.S. will benefit from the textile industry as well as the economic prosperity of El Salvador and Guatemala.

Under the joint statement on the framework for the U.S.-El Salvador agreement on reciprocal trade and investment, El Salvador has reinforced its dedication to upholding internationally acknowledged labor rights. El Salvador will forbid the importing of products made using forced or coerced labor.

According to the agreement, Argentina will no longer be subject to the reciprocal tariff rate on specific unavailable natural resources and non-patented articles for use in pharmaceutical applications.

The White House fact sheet stated that farmers, ranchers, fishers, small companies, and manufacturers in the U.S. will benefit from the agreements by increasing their exports to these trading partners and expanding their commercial options.

Notably, the senior administration official commented that the 10% reciprocal tariff rate imposed on April’s “Liberation Day” will continue to apply to Guatemala, El Salvador, and Ecuador. Ecuador’s 15% reciprocal duty did not change.

The White House press release stated that the agreements on reciprocal trade for “most of these countries” will be signed and made public during the next two weeks. U.S. Trade Representative Jamieson Greer confirmed that Guatemala and El Salvador already grant substantial duty-free treatment to the U.S.

Trump’s administration engages with Switzerland to reduce the trade surplus

The framework announced on Thursday comes after the White House announced similar framework agreements throughout Trump’s trip to Asia. Additionally, countries like Vietnam and Thailand published comprehensive agreements on reciprocal trade with Malaysia and Cambodia.

Switzerland is in trade negotiations with the Trump administration. The negotiations follow the imposition of a 39% tariff rate on Switzerland in August. U.S. Trade Representative Jamieson Greer stated that Swiss associates met with the administration at the White House on Thursday.

Greer said that Swiss authorities outlined a plan to lower and erase the trade surplus with the United States. He added that U.S. officials anticipated major reductions in both non-tariff barriers and Swiss tariffs on American goods.

According to data from the U.S. Census Bureau, Switzerland had a $38.3 billion goods trade surplus with the U.S in 2024. The surplus of goods increased to $55.7 billion in 2025 through July. The increase in surplus resulted from Switzerland’s exports to the U.S. being front-loaded in the first quarter prior to Trump’s “reciprocal” tariffs being applied in early April.