Trump’s tariff cuts could reshape the global food market

The planned agreements with Argentina, Guatemala, El Salvador and Ecuador would reduce tariffs on basic imported goods such as beef, bananas and coffee beans. These products are considered one of the most stubborn drivers of US inflation, so the administration considers it crucial to make supply chains cheaper.

According to The New York Times, Trump has also begun preparing broader tariff exemptions. The administration is examining a new executive order for foods that the US does not produce itself – such as coffee or certain citrus fruits – so targeted relief could be implemented for them. Treasury Secretary Scott Bessent also suggested that tariffs on fruit imports would be likely.

White House spokesman Kush Desai emphasized in a statement that the administration is committed to a “multi-layered, flexible strategy” that is based on both executive orders and trade agreements with key Western Hemisphere allies.

The step with the greatest economic impact may be the expected agreement with Argentina, which represents further political and economic support for Javier Milei’s reforms and could further open up the South American market, which is considered one of the most protectionist economies.

Tariff reductions could cause global price reductions in the coffee, banana and beef markets, which could also be reflected in the purchasing costs of international chains. However, market experts say the effects are only gradually being incorporated into consumer prices, and logistics, exchange rate and European regulatory factors will continue to strongly influence final prices.