The White House has reached new trade agreements with several South and Central American countries, which could result in reduced tariffs on certain imports.
MFN Tariffs For Scarce US Goods
On Thursday, new trade agreements were announced with Argentina, Guatemala, El Salvador, and Ecuador.
The deals with Guatemala, El Salvador, and Ecuador target non-tariff barriers such as digital services taxes, intellectual property conflicts, and food, health, and safety regulations. At the same time, Argentina will grant preferential market access to a broad range of U.S. exports, including key industrial, tech, medical, automotive, and agricultural products.
The U.S. will also offer Most Favored Nation (MFN) tariff treatment to specific originating products from these countries that the U.S. does not grow, mine, or produce in sufficient amounts.
A senior Trump administration official told Politico that the deal with Argentina is anticipated to exempt beef from the 10% tariff on its imports. This agreement, however, does not alter the U.S. quota for beef imports from Argentina.
The official also stated that while most import tariffs on these countries will stay the same, the U.S. is preparing to offer “some tariff relief on certain products or goods” soon, including Ecuadorian bananas and coffee.
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Impact On Coffee And Beef Prices
The U.S. is a major consumer of products such as coffee, bananas, and beef, and any changes in tariffs could have a significant impact on the market. This news comes after Treasury Secretary Scott Bessent hinted at tariff relief for imported goods, including coffee, on Wednesday. The country has also been grappling with high beef prices over the past few months.
Additionally, this move by the White House comes after President Donald Trump ordered a DOJ probe into meatpacking companies for alleged price manipulation of beef, citing concerns about foreign ownership and market distortions affecting U.S. ranchers and consumers.
Trump’s Recent Trade Deals
Trump’s recent Asia trip saw several major developments on the trade deal front, including reciprocal trade agreements with Malaysia and Cambodia, new investments from Japan and Korea, and plans for future trade talks with China, Thailand, and Vietnam.
Last week, the President also announced trade pacts worth nearly $150 billion with Uzbekistan, and some more with other Central Asian countries.
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US Inks New South American Trade Deals In A Bid To Lower Coffee, Banana And Beef Prices
