Trump slashes coffee, banana tariffs to cut soaring grocery bills

The Trump administration announced Thursday it will eliminate tariffs on coffee, bananas, other food imports and select textile products from four Latin American countries in a bid to lower prices for American consumers struggling with high grocery costs.

The White House reached framework trade agreements with Ecuador, Guatemala, El Salvador and Argentina that will eliminate levies on products that cannot be grown or produced in sufficient quantities in the US, according to a senior administration official.

“Coffee, we’re going to lower some tariffs and have some coffee come in,” Trump said during a Monday interview with Fox News host Laura Ingraham on “The Ingraham Angle.”

The deals will remove tariffs on bananas and coffee from Ecuador, as well as coffee, textiles and apparel from Guatemala, the official told reporters Thursday.

Overall tariff rates on the four countries will remain in place — 10% for Guatemala, El Salvador and Argentina and 15% for Ecuador.

Coffee has spiked 19% in price over the past year through September, while bananas jumped 7%, consumer price index data shows.

The administration expects retailers to pass the savings on to shoppers, the official said.

Treasury Secretary Scott Bessent hinted at the announcement on Wednesday, saying the administration planned “substantial” announcements that would cut costs on coffee, bananas and other fruits as part of a broader push to reduce the cost of living.

Americans buy nearly all their coffee from abroad, with 99% of the beans coming primarily from Brazil and Colombia, according to the National Coffee Association.

Trump slapped Brazil — the world’s top coffee producer — with a 50% tariff over the summer in response to a criminal case against former President Jair Bolsonaro.

Colombia is under a 10% tariff.

Secretary of State Marco Rubio met with Brazil’s Foreign Minister Mauro Vieira this week to discuss a framework trade agreement between the two nations, the State Department said Thursday.

A deal with Brazil could significantly impact coffee prices given the country’s dominant role in global production.

The framework deals with the four Latin American countries should wrap up within two weeks, the official said. More deals could close before year’s end.

The administration is also reportedly having “quite constructive” talks with other Central and South American nations, as well as Switzerland and Taiwan.

The Argentina deal will open that country’s markets to US beef and poultry. It also prohibits Argentina from discriminating against American digital services.

The tariff relief follows a brutal week for Republicans at the polls as Democrats seized victories in New Jersey, New York and Virginia — with voters citing sky-high living costs.

The overall inflation rate in September was up 3% from the same point in 2024.

Trump has zeroed in on affordability since the losses, though he continues to blame former President Joe Biden’s spending for high prices.

The New York Times reported Thursday that the White House may grant tariff breaks on beef, citrus and other imported foods to lower costs — even from nations without US trade deals.

A White House spokesperson did not immediately respond to a request for comment from The Post.

The administration official said the deals maintain overall tariff levels while providing relief on specific products and opening foreign markets to US goods in ways they have not been before.

The agreements also include commitments from the countries to refrain from imposing digital services taxes on US tech companies.