That’s why the Trump administration deserves tremendous credit for restoring and improving trade relations. They’ve had their eyes set on multiple Latin American countries such as Argentina, Guatemala, El Salvador, and Ecuador. Coffee and bananas are two key exports from these countries, and the newly negotiated bilateral jam pact will lead to reduced tariffs on such imports. These deals are expected to be officially signed in the coming two weeks. This event will be a historic turning point in U.S. trade policy.
Such agreements include tariffs elimination for coffee, cocoa and bananas. This amendment will sharply increase import volumes from these countries. The recently announced U.S.-Argentina deal will help provide greater access to beef markets abroad. This commitment demonstrates the Administration’s efforts to create viable reciprocal market conditions for beef trade.
Guatemala & Ecuador are among the top banana exporting countries to the US. The treaties will bring about more advantageous trading conditions for these countries, while still keeping some current tariffs in place. This means that a 10% equivalent reciprocal tariff will be maintained for goods imported from Guatemala, Argentina and El Salvador. At the same time, imports from Ecuador will still be slapped with a 15% tariff.
Part of the Trump administration’s messaging has made waves by emphasizing which products will be exempted. This includes products such as coffee, which could never be grown in the U.S. in any sort of commercially viable way. Brazil still ranks as the top coffee supplier to the United States, USDA data shows.
Over the past few months, the U.S. has applied new rates of tariff for several different countries. In doing so, this proposed action seeks to address trade imbalances and counteract worsening home-grown economic insecurity. We know the administration hasn’t ignored the increasing cost of living that comes with these trade dynamics.
“have committed to improved, reciprocal, bilateral market access conditions for trade in beef” – The White House
Some detractors garb different countries with the title of “worst offenders” in shocking trade practices. At the same time, the Trump administration is working to establish fairer trading relationships that work to the advantage of American consumers and producers alike.