US Moves to Ease Latin American Tariffs as Food Inflation Mounts

The White House is moving to dial back some of its own trade barriers, announcing that coffee and banana imports from Argentina, Guatemala, El Salvador, and Ecuador will soon face lower duties. 

The shift comes as US President Donald Trump confronts renewed scrutiny over rising food prices, with coffee alone up roughly 20% this year and beef inflation continuing to hover well above 8% on an annual basis.

Under the proposed agreements, reciprocal tariffs of 10% on imports from Argentina, Guatemala, and El Salvador will remain in place, alongside a 15% rate on goods from Ecuador. However, products that the US cannot produce at scale, such as coffee, cocoa, and bananas, will be exempted. 

Guatemala and Ecuador, as the two largest banana suppliers to the US, stand to benefit immediately once the deals take effect, which officials expect within two weeks. Severe weather disruptions in producing countries have already pushed global coffee and cacao prices higher this year, with futures markets reflecting supply uncertainty across Latin America and West Africa.

What Does This Mean for Me?

Brazil, the US’s top coffee supplier, is not included in the deal, meaning the overall price impact may be limited. Still, Washington is betting that targeted tariff relief will ease pressure on consumers while maintaining its broader framework of new trade rates introduced last August after global market volatility forced delays.

The new flurry of deals follows recent trade arrangements with the EU, South Korea, Japan, Cambodia, Thailand, and Malaysia, underscoring Washington’s attempt to stabilise trade flows while managing domestic inflation.