Trump plans to significantly cut food tariffs, and several trade agreements with Latin American countries will help reduce prices.

President Trump is planning to significantly reduce tariffs in response to high food prices for businesses, and to push a series of new trade agreements - including framework agreements with Argentina, Guatemala, El Salvador, and Ecuador - aimed at addressing voters' concerns about commodity costs. This move comes after Democrats won in key states and local elections last week, with candidates emphasizing concerns about the cost of living. The trade agreements with Latin American countries announced on Thursday will lower tariffs and barriers on everyday food items such as beef, bananas, and coffee beans, in an effort to alleviate the food price pressures that have plagued American people for years. In addition, Trump and senior government officials have hinted at broader tariff exemptions, which could lead to a comprehensive reduction in tariffs for popular food items. Trump promised to "lower coffee tariffs" in an interview earlier this week, while Treasury Secretary Scott Bensent hinted at preferential treatment for fruit imports. Kevin Hassett, Director of the National Economic Council, said on Wednesday at an event at the Washington Economic Club, "People have been discussing the possibility of adjusting food tariffs over the past few days." Trump is preparing to amend reciprocal tariffs, expected to include exemptions for beef and citrus products, and to go beyond an executive order that previously required officials to identify non-domestic food for duty-free treatment. White House spokesman Kush Desai said in a statement, "The Trump administration is committed to implementing a flexible, detailed, and multifaceted trade tariff strategy." He said that policy adjustments will be based on products identified by the president's executive order and "trade agreements signed with major allies in the Western Hemisphere." The most significant agreement announced on Thursday is with Argentina, which is the latest support from Washington to President Javier Mile's government, which is one of the most protectionist economies in the world. The White House statement said that "the two countries will open their markets to each other for key products," and Argentina will provide "preferential market access" for U.S. products such as pharmaceuticals, chemicals, and medical devices. The agreements with Guatemala, El Salvador, and Ecuador focus on reducing tariffs on key goods such as bananas and coffee beans that are not produced domestically in the United States. A senior government official, who requested anonymity, revealed that the framework agreements will be finalized in about two weeks, with specific products expected to be granted duty-free treatment instead of a comprehensive tariff reduction model, with the White House asking retailers and wholesalers to pass on the benefits to consumers. The official also revealed progress in trade negotiations with Switzerland, which could lower tariffs on goods such as watches and chocolates. These measures are intended to help reverse the impression that Trump is ignoring the cost of living for Americans. When signing a government reopening bill on Wednesday, Trump vowed to continue to "lower the cost of living, restore public safety, and achieve economic affordability." However, Trump is essentially revoking the tariffs imposed earlier this year, returning the rates to their pre-regime levels. While the government claims that lower tariffs in Latin America will benefit American companies, the trade volume between the signing countries and the United States is much lower than with other economies. "Beef Trade" For ideological ally Mile, this agreement marks a breakthrough in his goal of a trade deal with the United States this year. Earlier last month, the Trump administration launched a massive rescue package in the market selloff, providing $20 billion in emergency financing and directly purchasing pesos to stabilize the exchange rate, helping Mile's party win in the midterm elections. At the same time, many domestic industries in Argentina lack competitiveness globally due to high costs and heavy tax burdens. Therefore, opening up Argentina's fragile economy may face some resistance. According to the White House, the U.S. will also lift "equivalent tariffs imposed on certain non-patentable items and natural resources used for pharmaceutical purposes that cannot be sourced in the U.S." In the beef trade sector, the two countries have committed to "improving mutual market access conditions for beef." This is intended to alleviate the beef price pressures faced by American consumers in recent years, but it has sparked strong opposition from ranchers - an industry that mostly supports Trump - with the National Cattlemen's Beef Association warning that the import of Argentine beef will impact local producers. The government is assuaging producers through increased production plans such as opening federal land for grazing. According to data from the U.S. Department of Agriculture, the U.S. exported $2.6 million worth of beef and pork to Argentina in 2024. Due to concerns about avian flu, the Argentine government had previously blocked imports of U.S. poultry, a situation affecting American farms since 2022, and leading to a large number of poultry deaths earlier this year. While the scope of the final agreement is not yet defined, Argentina, as a member of the South Common Market, is constrained by the bloc's prohibition on members engaging in large-scale external negotiations. However, earlier this year, the South Common Market allowed member countries to choose up to 50 products for external tariff negotiations.