US to Scrap Tariffs on Coffee, Bananas from Latin America to Lower Grocery Prices

The United States announced on Thursday that it will immediately eliminate tariffs on key food imports including coffee, bananas, and other tropical products from Argentina, Ecuador, Guatemala, and El Salvador as part of new bilateral framework agreements. A senior Trump administration official confirmed the deals will be finalized within the next two weeks, marking a rapid response to voter concerns over high grocery prices following Republican setbacks in last week’s elections.

The move is designed to directly reduce costs for American consumers, with officials stating that retailers are expected to pass on the savings. Tariffs on items not produced domestically in the US — such as Ecuadorian bananas and coffee from multiple countries in the region — will be completely removed, while baseline duties on other goods will remain at 10-15 percent depending on existing trade balances. Similar exemptions are under consideration for beef, citrus, and additional food categories even from nations without formal agreements.

In exchange, the four Latin American countries have committed to opening their markets wider to US agricultural and industrial exports and pledged not to impose digital services taxes on American technology companies. The agreements mirror recent deals reached with several Asian nations and are part of a broader Trump administration strategy to use targeted tariff relief to ease living costs while securing better access for US producers abroad.

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Leaders across the region welcomed the development enthusiastically. El Salvador’s President Nayib Bukele called the US “friends,” Guatemala’s Bernardo Arévalo highlighted new investment attractiveness, Ecuador praised the boost to its banana and shrimp sectors, and Argentina’s government thanked President Javier Milei’s close alignment with Washington for making the framework possible.

With talks described as “quite constructive” with additional Central and South American countries — and positive discussions also underway with Switzerland and Taiwan — administration officials signaled more tariff-relief announcements could arrive before year-end as President Trump intensifies efforts to deliver tangible price reductions on everyday goods for American families.

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