U.S. Tariff Cuts on Coffee and Beef
U.S. Tariff Cuts on Coffee and Beef lower duties from select Latin American suppliers to ease input costs for food firms and offer near-term margin relief.

KEY TAKEAWAYS
- White House announced framework deals with Argentina, Guatemala, El Salvador and Ecuador to lower coffee and beef tariffs.
- Coffee prices rose 18.9% y/y and beef 14.7% y/y, highlighting consumer cost pressure.
- Tariffs on Brazilian imports remain unchanged at 50%, limiting the potential scale of relief.
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The White House on Nov. 13–14, 2025 announced framework trade agreements to lower tariffs on coffee, bananas, and beef from Argentina, Guatemala, El Salvador, and Ecuador. The tariff cuts aim to ease consumer food prices and reduce input costs for companies such as Starbucks.
Framework Trade Agreements and Impact on Prices
The agreements apply to products that cannot be grown, mined, or produced in sufficient quantities in the U.S. They will be signed and publicized within two weeks. For Argentina, the deal removes tariffs on certain natural resources and non-patented pharmaceutical articles. A senior administration official said, "The U.S. promises to 'remove its reciprocal tariffs on certain qualifying exports from' those nations on products that 'cannot be grown, mined, or naturally produced in the United States in sufficient quantities.'"
U.S. Consumer Price Index data for September 2025 showed coffee prices up 18.9% year-over-year, bananas up 6.9%, and beef up 14.7%. The White House expects some positive price effects for coffee, cocoa, and bananas. Lower duties from participating suppliers could reduce input costs for import-dependent food and beverage companies, providing near-term margin relief.
Limits and Exceptions
The tariff cuts exclude Brazilian imports, which remain subject to a 50% tariff. Brazil is a major global supplier of coffee and beef, so maintaining its duties may limit the overall impact on U.S. prices. Reciprocal tariff rates for Guatemala and El Salvador will stay at 10%, a rate set on "Liberation Day" in April, while Ecuador’s reciprocal tariff remains at 15%. The White House is also pursuing separate talks with Switzerland on tariff reductions, highlighting that these measures target specific Latin American suppliers.





