In a move that could soon reshape grocery bills and international trade relations, the Trump administration has announced new trade frameworks with Argentina, Ecuador, El Salvador, and Guatemala, aiming to lower tariffs on coffee and bananas while boosting U.S. exports. The deals, revealed on November 13 and 14, 2025, are part of a broader strategy to address rising food prices and economic anxieties ahead of a politically charged season.
For months, Americans have felt the sting of climbing coffee and beef prices, with coffee alone jumping about 20% this year, according to data cited by BBC. Many have blamed severe weather for driving up the cost of coffee and cacao, while others point to supply chain disruptions and global market volatility. Against this backdrop, the Trump administration’s decision to relax certain tariffs is drawing attention—and not a little controversy.
The frameworks, which are expected to be signed within two weeks, represent a significant shift in U.S. trade policy with Latin America. According to Associated Press, the agreements are designed not only to lower import taxes on select agricultural products but also to pave the way for U.S. firms to sell more industrial and agricultural goods abroad. The deals include commitments to reduce non-tariff barriers, eliminate import licenses, and resolve intellectual property disputes. Countries involved have also agreed not to impose digital services taxes on U.S. companies, a sticking point in previous negotiations.
Under the new arrangements, a reciprocal tariff of 10% will remain on goods from Guatemala, Argentina, and El Salvador, while imports from Ecuador will continue to face a 15% tariff. However, products that the U.S. cannot produce in sufficient quantities—like coffee—will be exempted from these tariffs. Senior administration officials singled out coffee, cocoa, and bananas as likely beneficiaries of the new exemptions, offering hope for some relief at the checkout line if retailers and wholesalers pass on the savings to consumers.
Guatemala and Ecuador are the largest banana exporters to the U.S., and while Brazil remains the top coffee supplier (and is not covered by the deal), Central American countries stand to benefit from the tariff changes. “Tariffs in these nations could be reduced on coffee, cocoa and bananas,” a senior U.S. administration official told Associated Press, adding that the aim is to address affordability, a growing concern for American voters.
Guatemala’s President Bernardo Arévalo welcomed the development, stating, “70% of the products Guatemala exports to the U.S. will face zero tariffs under the framework, as exclusions are granted for goods the U.S. is unable to make.” All other goods will remain subject to the 10% tariff. Arévalo described the framework as “good news” for Guatemala, emphasizing the potential to attract new investment and boost economic growth.
Argentina’s President Javier Milei was equally enthusiastic, hailing the deal as “tremendous news.” He noted, “As you can see, we are strongly committed to making Argentina great again.” For Argentina, this marks the first bilateral trade framework with the U.S. in nearly a decade, a point of pride for Milei’s administration. The U.S.-Argentina deal also tackles the thorny issue of beef market access, with both countries committing to improved, reciprocal, bilateral market access conditions for beef trade. The White House’s joint statement underscores the importance of this aspect, given that the soaring price of beef has become a political hot potato in the U.S.
President Trump himself has not shied away from the issue, recently asking the Justice Department to investigate meat-packing companies over their possible role in driving up beef prices. This move came after other proposals to lower prices sparked backlash among American ranchers, highlighting the delicate balance between consumer relief and industry protection.
For the Trump administration, these trade deals are the latest chapter in a saga that began in April, when sweeping new tariffs were announced on dozens of countries. The initial rollout sparked global financial jitters, prompting the administration to delay implementation and pursue trade talks instead. By August, new tariff rates were introduced, with the “worst offenders” facing higher rates as payback for what the administration described as unfair trade practices. The recent agreements with Latin American partners follow similar deals reached with the European Union, South Korea, Japan, Cambodia, Thailand, and Malaysia.
While the White House has touted these frameworks as a win for American consumers and exporters, the reality is more nuanced. The U.S. Department of Agriculture notes that Brazil, which is not part of the new deals, remains the top coffee exporter to the U.S. This means that while some relief may be felt on certain products, broader market forces—like weather and global supply—will continue to influence prices. Senior administration officials acknowledged this, telling BBC that “prices will hopefully fall to some extent when tariffs ease, if retailers and wholesalers pass along savings to consumers.”
On the political front, the timing of the deals is hard to ignore. President Trump and Treasury Secretary Scott Bessent have both made public vows to lower coffee prices, signaling a newfound urgency on affordability after the Republican Party’s lackluster performance in recent off-year elections. Trump has previously downplayed concerns about the cost of living, calling affordability a “new word” and a “con job” by Democrats. Yet the administration’s actions suggest a pivot, with officials now citing affordability as a key driver behind the tariff relaxations.
The trade frameworks also address broader economic and regulatory issues. By eliminating import licenses, resolving intellectual property rights disputes, and prohibiting digital services taxes on U.S. companies, the deals aim to create a more level playing field for American businesses. For U.S. firms looking to expand in Latin America, this could mean fewer bureaucratic hurdles and greater access to growing markets.
Of course, the devil is in the details. The frameworks are not yet finalized, and much will depend on how the agreements are implemented and whether the promised tariff relief translates into real savings for consumers. With the signing expected within two weeks, all eyes will be on Washington and the capitals of the participating countries to see if the deals deliver on their promises.
For now, shoppers and coffee drinkers alike can only wait—and hope that the next bag of beans or bunch of bananas comes with a friendlier price tag.
