Trump Administration Lowers Tariffs on Coffee & Bananas from Latin America Amid US โSupply Concerns
WASHINGTON โฃD.C. – The Trump administration announced Thursday โฃit will reduce import duties on coffee and bananas from Guatemala, Argentina, El Salvador, and Ecuador, responding โto rising prices and limited domestic production. The move, reported by the BBC, aims to alleviate cost โฃincreases โคfor American โคconsumers.
Under โthe โnew framework, a 10 โpercent tariff will remain โon goods from Guatemala,โฃ Argentina, and โคEl Salvador. A separate โฃagreement โwith Ecuador establishes a 15 percent tariff. Products notโข sufficiently โขproducedโ within the United States, โnotably coffee, are eligible for exemption.
The tariff reductions โfollow promises from โboth โขPresident Trumpโฃ and Treasury Secretaryโ Scott Bessent to lower coffee prices, whichโ have increased approximately 20 percent in the U.S.thisโค year. Bessent also indicated plans to ease tariffs on bananasโค and โother fruits.
According to BBC reporting citingโข high-ranking officials,โ cocoaโข may also be โincluded โฃin the exemptions โขstemming from the โagreements with the four โLatin Americanโฃ nations.
The decision carriesโ potential implicationsโข for global supply, as these four countries โคare also key suppliers to the European Union. Increased U.S. demandโฃ due to lower โขtariffs โคcould reduce availability for the EU, particularly โconcerning coffee, which is alreadyโค facing a global shortage due to adverse weather conditions and crop infections like fungal diseases.
