1:03Coffee grains are presented on Nov. 13, 2025, in San Anselmo, California. Amidst soaring coffee costs that have risen nearly 20% lately, U.S. Treasury Head Scott Bessent mentioned that the U.S. might ease duties on goods not readily generated inside the country.Justin Sullivan/Getty Images
On Thursday, the White House, through a confidential call with reporters, unveiled foundational agreements with Argentina, Guatemala, El Salvador, and Ecuador, aspiring to decrease the prices of specific food items.
These arrangements follow pledges from President Donald Trump and certain key allies for an announcement concerning a deal intended to lessen the increasing costs of bananas, coffee, and additional farm products. Nevertheless, a high-ranking administration representative on the call could not offer precise information regarding the extent of financial relief this would offer to American families.
Based on figures from the September 2025 Consumer Price Index, coffee values have skyrocketed by 18.9%, bananas have increased by 6.9%, and beef costs have risen by 14.7% over the previous year.
Economists have linked portions of the higher prices for coffee and bananas to Trump’s trade duties – which are products that the U.S. does not produce abundantly, instead depending on imports from other nations.
Coffee beans are displayed on Nov. 13, 2025, in San Anselmo, California. With coffee prices surging nearly 20% in recent months, U.S. Treasury Secretary Scott Bessent indicated that the U.S. could lower tariffs on products that aren’t easily domestically produced.Justin Sullivan/Getty Images
The revelation excludes any easing of the 50% duties imposed on Brazil, a leading provider of coffee and beef imports into the U.S.
The high-ranking administration representative reported that the corresponding tariff percentage for Guatemala, El Salvador, and Ecuador will stay at the previously established 10% rate set on what is known as “Liberation Day” in April. The reciprocal tariff percentage for Ecuador remained constant at 15%.
Nonetheless, the representative highlighted that these agreements would offer "easing on a range of items."
In communications about the basic agreements with Guatemala, El Salvador, and Ecuador, the significant qualification is that the U.S. pledges to "eliminate its corresponding duties on particular qualifying exports from" those countries for items that "cannot be farmed, mined, or naturally sourced inside the United States in ample quantities."
For Argentina, the pact assures the removal of the corresponding tariff rate on "certain scarce natural materials and non-patented items for application within the pharmaceutical sector."
When queried regarding the impact on prices and when Americans might notice the difference, the senior government official evaded offering concrete figures. Yet, they did say that the White House anticipates "some advantageous impacts on costs" for items such as coffee, cocoa, and bananas.
"I don’t possess a precise figure on how this could create an effect, right? I mean, I believe Secretary Bessent is correct in stating that to the degree that any tariff cost was relayed to the consumer, I am hopeful that merchants, you know, will no longer need to do that," the senior official from the administration mentioned.
"I’m unsure exactly where, you know, how the tariff was distributed along the supply chain there. I’m not able to influence weather events, but our outlook is that there’ll be some, you know, certain positive effects for prices, for things like coffee, cocoa, bananas," the senior official added.
The arrangements on parallel trade for "most of these nations" are scheduled to be formalized and revealed in the coming two weeks, according to the official.
Guatemala and El Salvador are already providing notable duty-free treatment to the U.S., as per the official, however, there exist non-tariff obstacles that have been in effect for quite some time across these four nations.
The framework deals announced on Thursday come after the White House released equivalent basic arrangements over the course of Trump’s journey across Asia with nations such as Vietnam and Thailand, and it also shared complete trade agreements with Malaysia and Cambodia.
"With all of these agreements, both those in Asia and the ones we’re announcing today, we maintain the tariff. We achieve certain tariff reductions on specified goods or items, while at the same time, we introduce overseas markets in ways they haven’t been introduced prior," the senior official stated.
U.S. in trade discussions with Switzerland
During the dialogue, the official also verified that Switzerland is engaged in trading negotiations with the Trump administration. This transpires in the wake of Switzerland being imposed with a 39% tariff rate back in August.
The official noted that representatives from Switzerland were present at the White House on Thursday for gatherings, discussing potential arrangements with the U.S. that might lead to decreased tariff percentages. The dialogues were assessed as "very positive," by the official.
"They are keenly aware of their trade imbalance with the United States and the necessity to diminish and ultimately eliminate it, and they’ve presented strategies to accomplish this. Just like with numerous other trade pacts we engage in, it involves a blend of factors, where, should this agreement gain approval from both the President and the Swiss population, we anticipate a reduction in tariffs directed towards Switzerland," the senior official commented.
Sourse: abcnews.go.com
