Overview
- The White House announced framework agreements with Argentina, Guatemala, Ecuador and El Salvador to cut U.S. tariffs on selected imports such as coffee, bananas and cacao in exchange for those countries opening their markets to U.S. goods.
- General tariff baselines of 10% for Argentina, Guatemala and El Salvador and 15% for Ecuador stay in place, with targeted exemptions to be finalized and signed in the coming weeks.
- Treasury Secretary Scott Bessent said additional, “substantial” tariff reductions are coming for products the U.S. does not grow, specifically citing coffee, bananas and other fruits.
- Country specifics include Ecuador’s banana and cacao relief, Argentina’s partial rollback on certain 10% levies and beef‑market access provisions that have drawn pushback from U.S. ranchers, and Guatemala’s president saying over 70% of his country’s exports could reach a zero tariff.
- Analysts caution that Brazil—the largest U.S. coffee supplier—remains outside these accords and under a 50% coffee tariff, and that supply constraints limit prospects for immediate retail‑price declines.