U.S. to Remove Select Tariffs on Latin American Imports to Ease Food Prices

The United States announced plans to lift tariffs on certain food and non-domestic products imported from Argentina, Ecuador, Guatemala, and El Salvador, aiming to reduce consumer prices on items such as coffee and bananas. A senior Trump administration official said the framework agreements, expected to be finalized within two weeks, would lower costs for American households and give U.S. companies greater access to these markets. Treasury Secretary Scott Bessent added that more “substantial” announcements were expected soon as part of the administration’s efforts to address rising cost-of-living concerns.

The new deals, similar to agreements recently made with Asian countries, will maintain existing overall tariff levels—10% for El Salvador, Guatemala, and Argentina, and 15% for Ecuador—but remove tariffs on goods not produced in the United States. In exchange, partner nations have committed to forgo digital services taxes on U.S. companies and open their markets further to American agricultural and industrial goods. The administration is also engaged in constructive trade discussions with additional Central and South American nations, as well as Switzerland and Taiwan.

Leaders from the four participating countries welcomed the agreements, highlighting potential boosts in investment and export competitiveness. Argentina praised the move as a step toward increased U.S. investment, while El Salvador and Guatemala described it as a sign of strengthened bilateral ties. Ecuador, a major exporter of bananas and shrimp, said the tariff relief would significantly benefit its export sector. The initiative comes as the Trump administration faces rising voter concerns over high prices—an issue economists say has been compounded by the administration’s own wide-ranging tariff policies.

Pic Courtesy: google/ images are subject to copyright