U.S. will lift tariffs on some coffee from Latin America
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A handful of coffee beans. Photo: Mehmet Futsi/Anadolu via Getty Images
The U.S. has struck trade deals with a group of Latin American countries that will include tariff relief on some coffee and fruit exports, senior administration officials said Thursday.
Why it matters: Coffee has become for the Trump administration what eggs were to the Biden administration: The emblem of an affordability crisis that has weighed on public perception of President Trump's economic policies.
- In September, coffee prices increased more than any other good or service tracked in the Consumer Price Index.
- Treasury Secretary Scott Bessent promised earlier this week that relief was coming.
Catch up quick: The administration announced framework deals Thursday with Argentina, Ecuador, El Salvador and Guatemala.
- One administration official, in a briefing with reporters, said those deals would include relief on some products not grown domestically, citing the example of coffee and bananas from Ecuador.
By the numbers: Those four countries account for about 7% of U.S. coffee imports by weight, per World Bank data.
- More than half of imports by weight come from Brazil and Colombia, which are still subject to significant tariffs.
The intrigue: The administration official acknowledged that coffee prices are structurally high due to other factors, like severe weather damaging the Brazilian crop.
- But they noted that the White House is hoping whatever relief comes from the tariff changes is then passed along by wholesalers and retailers to the consumer.
Flashback: In early September, the administration opened the door to tariff relief on multiple categories of goods, including foodstuffs where there wasn't sufficient domestic supply.
- The deals announced Thursday follow from that shift.
What to watch: The framework deals are expected to be finalized in the next couple of weeks, but it's not clear how quickly after that relief may be possible.
- Coffee futures are off the record highs they set earlier this year, but not by much, indicating that consumers may have to accept historically high prices for a while longer.
Editor's note: This story has been updated throughout with new information.
