US Tariffs Eased as US Removes Tariffs on Key Foods From 4 Nations

In a major policy shift aimed at easing the cost of living, the United States announced that it will remove tariffs on select foods and other imports from Argentina, Ecuador, Guatemala, and El Salvador. The move is part of new framework agreements designed to expand trade access, reduce prices for American consumers, and strengthen economic ties with Latin America.

According to senior officials, the tariff cuts are expected to immediately impact prices of everyday items such as bananas, coffee, and other foodstuffs imported from the region. The administration has urged retailers to pass these savings directly to consumers, positioning the agreements as part of its broader affordability agenda.

Framework Agreements to Be Finalized Soon

The deals with Argentina, Ecuador, Guatemala, and El Salvador are expected to be finalized within two weeks. Additional trade arrangements with other countries in Central and South America may follow before the end of the year, as discussions have reportedly been productive.

While most goods from Argentina, Guatemala, and El Salvador will continue to face 10% tariffs — and 15% from Ecuador — the new exemptions will apply to products that are not grown, produced, or mined within the United States. This includes several agricultural imports, particularly bananas and coffee, which form a significant share of trade with Ecuador and other Latin American nations.

Push to Lower Consumer Prices

The tariff rollback aligns with the administration’s recent push to lower prices for US households. With voters increasingly citing the cost of living as a top concern, officials have emphasised that easing import duties is a practical strategy to bring down food inflation.

Treasury Secretary Scott Bessent recently hinted at upcoming “substantial” announcements tied to lower prices on coffee, bananas, and other fruits. The administration has also been reviewing further exemptions on food imports such as beef and citrus, even from nations without established trade agreements.

Latin American Leaders Welcome the Move

Governments across the four nations applauded the announcement, highlighting the potential economic boost and improved access to US markets.

• Argentina’s Foreign Minister Pablo Quirno said the framework creates the right environment for increased US investment and thanked President Javier Milei for backing the agreement.

• El Salvador’s President Nayib Bukele shared the update publicly, calling the US a “friend” and praising renewed trust between the countries.

• Guatemalan President Bernardo Arevalo said the deal strengthens Guatemala’s competitive edge and enhances its appeal to foreign investors.

• Ecuador’s government said the tariff removal would strengthen export sectors such as bananas, shrimp, and oil while deepening ties with Washington.

Part of Broader Global Trade Strategy

These agreements mirror similar deals made recently with several Asian nations. The administration has focused on balancing tariff relief with opening foreign markets for US agricultural and industrial goods. Under the new frameworks, partner countries must also refrain from imposing digital services taxes on American companies.

US officials also confirmed ongoing positive discussions with Switzerland and Taiwan, indicating a wider global effort to reshape trade ties.

As the US works to address voter frustration over high prices — and as import tariffs remain a significant factor — the latest tariff exemptions mark a strategic shift ahead of further trade announcements expected later this year.