Post by : Badri Ariffin

The Trump administration announced a major move Thursday aimed at lowering the cost of everyday staples, unveiling trade agreements with four Latin American nations—Argentina, Guatemala, El Salvador, and Ecuador. The initiative comes amid growing scrutiny over rising living costs and the economic climate in the United States.

Under the initial framework, a 10% tariff will remain on most goods from Guatemala, Argentina, and El Salvador, while Ecuador’s imports will carry a 15% tax. However, essential products not sufficiently produced in the U.S., including coffee, will be exempt from these tariffs. Bananas and cocoa are also expected to benefit, providing relief for U.S. consumers facing record-high prices.

Coffee prices in the U.S. have surged roughly 20% this year, driven by severe weather conditions in key growing regions. While Brazil remains the top coffee exporter to the U.S., Central American nations like Guatemala contribute significantly to the market. Officials noted that easing tariffs could help bring prices down—provided the savings reach retail shelves.

The agreements also cover other trade areas. The U.S.-Argentina deal, for instance, aims to enhance market access for beef, a product that has also seen steep price increases. President Trump previously raised concerns about rising meat costs and has urged federal investigations into the meatpacking sector’s pricing practices.

These trade deals are expected to be finalized within the next two weeks, marking the latest step in the administration’s global trade strategy. Earlier agreements have been reached with regions including the European Union, South Korea, Japan, Cambodia, Thailand, and Malaysia.

This move reflects the administration’s broader effort to balance trade protection with consumer affordability, highlighting the political and economic pressures driving U.S. trade policy in the current year.

#Global News #Global Updates