Trump's Tariff Shake-Up: Boost for U.S.-Latin America Trade

The United States plans to lift tariffs on certain imports from Latin American countries under new framework agreements. This will enhance market access for U.S. firms and lower prices domestically. The deals also aim to curb digital services taxes and boost investment opportunities, potentially easing cost-of-living pressures.

The United States has announced a significant shift in its trade policy, as it plans to remove tariffs on selected imports from Argentina, Ecuador, Guatemala, and El Salvador. This move, under framework agreements, is designed to amplify market access for U.S. businesses while aiming to lower domestic prices, particularly for items like coffee and bananas.

Finalization of these agreements with most countries involved is expected within two weeks, according to a senior Trump administration official. U.S. Treasury Secretary Scott Bessent hinted at upcoming substantial announcements aimed at reducing living costs for Americans through decreased product prices.

This strategy emerges amid political reverberations from recent Democratic victories tied to cost-of-living concerns. While facilitating trade without tariffs on some items, the agreements maintain certain duties, addressing digital service taxes, and opening new avenues for U.S. investments in the countries involved.

(With inputs from agencies.)