The United States intends to reduce tariffs on some food and textile products coming from Argentina, El Salvador, Ecuador and Guatemala, according to administration sources. US President Donald Trump announced the signing of several trade agreements with these countries that would reduce the prices of bananas, coffee, beef, citrus and other products.
The Republican thus seeks to regain the initiative in the fight against the rising cost of living, one of the major focuses of the recent election campaign for mayor of New York, which the Republicans resoundingly lost at the hands of the socialist Zahran Mamdani.
The new trade agreements that the United States will formalize in a framework agreement with these four countries seek to illustrate the change in the administration’s cost-of-living strategy. To do this, it will ease some of the so-called reciprocal tariffs that affect essential elements of the shopping basket.
The White House explained through a joint statement with the four Latin American countries that “the agreements guarantee commitments on economic and national security to strengthen supply chains and trade alliances in the region, and deepen bilateral cooperation in trade and investment to provide American exporters with unprecedented access to Central and South American markets.”
“The United States will also grant most-favored-nation tariff treatment to certain products originating in these countries that cannot be grown, extracted, or produced naturally in the United States in sufficient quantities,” the memorandum states.
Treasury Secretary Scott Besent had already announced this measure a few days ago in an interview with Fox News. “In the coming days, important news will be announced about products that we do not grow in the United States, such as coffee, bananas and other fruits. This will cause prices to drop significantly,” he said.
Last September, the White House issued an executive order anticipating a potential reduction in import taxes on some items that were not produced in the United States when it entered into trade agreements with other countries.
The joint statement specifies that tariffs on other products detailed in the executive order list published in September will also be reduced, as expected. New York TimesWhich indicates that the White House is preparing tariff exemptions for hundreds of products in order to relieve tension over the rising costs of living.
“The Trump administration is committed to pursuing a flexible, nuanced, and multifaceted strategy on trade and tariffs,” White House spokesman Khush Desai said in a statement.
After last week’s electoral setback, when Republicans also lost Virginia, New Jersey and other local elections, Trump ordered his trade team to identify products in his shopping cart that were not produced in the United States in order to lower tariffs on them.
Moreover, Trump’s partial withdrawal of tariffs in these countries represents a step backwards in his trade policy at a time when the US Supreme Court is analyzing whether the method used by the US President to impose import duties is legal or not. In the first hearing of the case, Supreme Court justices expressed doubts about the legality of the tariffs, although they have not yet made any decision.
Argentina will grant preferential market access to exports of U.S. products, including certain pharmaceuticals, chemicals, machinery, information technology products, medical devices, automobiles, and a wide range of agricultural products.
El Salvador will reform non-tariff barriers to accepting vehicles and auto parts manufactured in accordance with U.S. vehicle safety and emissions standards and medical device and pharmaceutical certifications.
Guatemala is committed to facilitating digital commerce, including refraining from imposing taxes on digital services or other measures that discriminate against U.S. digital services or digitally distributed U.S. products.
Ecuador will reduce tariff barriers in key product sectors, such as nuts, fresh fruit, legumes, wheat, wine and spirits, and eliminate variable tariffs that apply to many agricultural products. “These actions will generate significant commercial and market access opportunities for U.S. exports,” the memo highlights.
The framework agreements are scheduled to be finalized in about two weeks and are expected to exempt specific products rather than reduce existing reciprocal tariffs, according to a senior Trump administration official, according to Bloomberg. The White House expects retailers and wholesalers to pass on any benefits to American consumers, the official added.
US tariffs on other products from those countries will remain unchanged: 15% for Ecuador and 10% for Argentina, Guatemala and El Salvador. In addition, these countries will reduce regulations and licensing requirements for US companies and coordinate with Washington on trade with non-market economies such as China.
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