Trump Administration Lowers Tariffs on Coffee & Bananas from Latin America Amid US Supply Concerns
WASHINGTON D.C. – The Trump administration announced Thursday it will reduce import duties on coffee and bananas from Guatemala, Argentina, El Salvador, and Ecuador, responding to rising prices and limited domestic production. The move, reported by the BBC, aims to alleviate cost increases for American consumers.
Under the new framework, a 10 percent tariff will remain on goods from Guatemala, Argentina, and El Salvador. A separate agreement with Ecuador establishes a 15 percent tariff. Products not sufficiently produced within the United States, notably coffee, are eligible for exemption.
The tariff reductions follow promises from both President Trump and Treasury Secretary Scott Bessent to lower coffee prices, which have increased approximately 20 percent in the U.S.this year. Bessent also indicated plans to ease tariffs on bananas and other fruits.
According to BBC reporting citing high-ranking officials, cocoa may also be included in the exemptions stemming from the agreements with the four Latin American nations.
The decision carries potential implications for global supply, as these four countries are also key suppliers to the European Union. Increased U.S. demand due to lower tariffs could reduce availability for the EU, particularly concerning coffee, which is already facing a global shortage due to adverse weather conditions and crop infections like fungal diseases.