Lead: The White House on Thursday announced framework trade agreements with Argentina, Guatemala, El Salvador and Ecuador intended to reduce costs for some imported groceries, including coffee and bananas. The administration said reciprocal tariffs will be adjusted for certain products that cannot be produced in sufficient quantities in the United States, but officials declined to quantify expected consumer savings. The announcement follows public promises from President Donald Trump and senior aides to address recent commodity-driven price jumps. The agreements are framework-level and will be finalized and published within about two weeks, the administration said.
Key takeaways
- The White House announced framework deals with Argentina, Guatemala, El Salvador and Ecuador aimed at lowering prices on selected imported foods and inputs.
- September 2025 Consumer Price Index shows coffee up 18.9%, beef up 14.7% and bananas up 6.9% year-over-year.
- The administration said reciprocal tariffs will be removed for qualifying exports that cannot be produced in sufficient U.S. quantities; specifics on products and timing were not detailed.
- No relief was announced for the 50% tariffs on Brazil, a major supplier of coffee and beef to the U.S.
- Administration statements about reciprocal rates contained an inconsistency: officials referenced a 10% rate for Guatemala, El Salvador and Ecuador but also said Ecuador’s reciprocal rate remained 15%.
- Deals follow similar framework agreements with Asian countries and full reciprocal-trade agreements published for Malaysia and Cambodia earlier in the year.
- Separately, the administration confirmed trade talks with Switzerland after an August 39% tariff was imposed on Swiss goods.
Background
U.S. consumer prices for several agricultural goods have risen sharply in the past year, driven by a mix of global supply shocks, weather events and trade policy. The Bureau of Labor Statistics reported in September 2025 that coffee prices climbed 18.9% year-over-year, beef rose 14.7% and bananas 6.9%, figures cited repeatedly by administration officials. The Trump administration has imposed higher tariffs on a range of trading partners over recent years; economists say tariffs can raise import costs for goods the U.S. does not produce domestically at scale.
Trade negotiations during the current administration have used a mix of high tariffs and targeted reciprocal deals intended to open foreign markets while preserving leverage. Earlier framework announcements came during a presidential Asia trip that included Vietnam and Thailand, while full reciprocal-trade pacts were published for Malaysia and Cambodia. U.S. trade strategy has emphasized both tariff pressure and selective tariff relief tied to market access or other reciprocal concessions.
Main event
On a background call with reporters, a senior administration official outlined framework deals with Argentina, Guatemala, El Salvador and Ecuador that the White House says will remove U.S. reciprocal tariffs on certain qualifying exports. The official emphasized the relief applies only to products “that cannot be grown, mined, or naturally produced in the United States in sufficient quantities.” Precise product lists and tariff schedules were not released on the call.
The administration described the Ecuador and Central American measures as maintaining previously set reciprocal rates, referencing a 10% rate established in April’s so-called “Liberation Day” notices—while also stating Ecuador’s reciprocal rate remained 15%, an inconsistency that officials did not resolve on the call. For Argentina, the framework specifically mentions removing reciprocal tariffs on “certain unavailable natural resources and non-patented articles for use in pharmaceutical applications.”
Notably, officials said the announcement does not change the 50% tariffs applied to Brazil, which remains a principal supplier of coffee beans and beef to the United States. The senior official signaled that the agreements should produce “some positive effects for prices” on coffee, cocoa and bananas but repeatedly declined to provide a numerical estimate of consumer savings or a precise timeline for price transmission.
The White House said most of the framework agreements will be formally signed and publicized within roughly two weeks. Officials also acknowledged long-standing non-tariff barriers in the partner countries and said the deals aim to expand market access in exchange for targeted U.S. tariff relief on items deemed unavailable domestically.
Analysis & implications
Even if reciprocal tariffs on selected imports are removed, the impact on retail prices is uncertain and likely limited in the near term. Price pass-through from tariff changes depends on how costs have been allocated across exporters, importers, distributors and retailers; the senior official on the call said they could not trace that allocation precisely. For commodities like coffee and bananas, global supply factors such as crop yields, harvest timing and shipping costs often dominate short-term price movements.
The administration’s approach mixes tariff pressure with selective relief as a bargaining tool: keep headline tariffs in place while offering carve-outs for goods deemed scarce domestically. That preserves negotiating leverage but can complicate predictability for buyers and suppliers. Markets that rely on a small number of exporting countries — for example, coffee from Brazil and Ecuador — will respond to changes in both policy and non-policy shocks like weather or pests.
Politically, the announcement allows the White House to point to concrete steps addressing consumer concerns about grocery inflation ahead of the 2026 cycle while avoiding broad tariff rollbacks that could be framed as concessions. For trading partners, these framework agreements open the possibility of expanded U.S. market access in return for preferential treatment on targeted U.S. imports, a common structure in recent U.S. trade talks.
Comparison & data
| Item | YoY change (Sep 2025 CPI) |
|---|---|
| Coffee | +18.9% |
| Beef | +14.7% |
| Bananas | +6.9% |
These CPI increases show the relative scale of recent price pressure. Coffee prices have surged nearly 20% year-over-year, making them the most pronounced of the three. Any tariff relief targeted at coffee imports could help reduce import-related cost components, but overall retail prices will still reflect broader supply-chain and market dynamics.
Reactions & quotes
“I don’t have a precise number on how this might have the impact,” the senior administration official said when asked about expected consumer savings, signaling uncertainty about exact pass-through to retail prices.
Senior administration official (background call)
“To the extent that any of the tariff price was passed down to the consumer, I would hope that retailers no longer need to do that,” a senior official paraphrased Treasury Secretary Scott Bessent’s point that tariff reductions can relieve some cost pressures.
U.S. Treasury (paraphrase of Secretary Scott Bessent)
Economists cautioned that tariff adjustments are only one factor affecting grocery prices and emphasized weather, global demand and logistics as key drivers for commodities like coffee and beef.
Independent economists (summary reaction)
Unconfirmed
- The administration did not provide a specific estimate of how much consumer prices will fall, so the size of the benefit remains unconfirmed.
- Official statements on reciprocal rates were inconsistent: the call referenced a 10% rate for Guatemala, El Salvador and Ecuador and also said Ecuador’s reciprocal rate remained 15%; the exact applied rates await published texts.
- It is unconfirmed how quickly any tariff changes will translate into lower shelf prices, given uncertain pass-through along supply chains.
- Talks with Switzerland were described as “very positive,” but the scope and timeline for any tariff reductions with Switzerland were not detailed on the call.
Bottom line
The White House framework deals with Argentina, Guatemala, El Salvador and Ecuador signal a targeted effort to ease import-related price pressure on certain groceries without broadly rolling back tariffs. The measures are narrowly framed to cover items unavailable in sufficient U.S. quantities and will require specific product lists and legal texts before implementation.
Consumers and markets should expect limited near-term relief; meaningful price changes will depend on the finalized product lists, the pace of administrative implementation, and broader supply-side factors such as crop yields and shipping costs. Observers will watch the forthcoming published agreements and any retailer responses for clearer indications of whether and when shoppers will see lower prices at the checkout.
Sources
- ABC News — Media report summarizing the White House background call and statements.
- U.S. Bureau of Labor Statistics (CPI) — Official inflation dataset and releases (September 2025 CPI figures).
- The White House (briefing room) — Official statements and background materials on trade negotiations (official source).