U.S. announces elimination and reduction of tariffs on Ecuadorian and other Latin American imports

The U.S. announced Friday it is exempting foods like bananas, beef and coffee from its sweeping country-by-country tariffs, as the government grapples with cost-of-living frustrations and quickly rising prices for imported agricultural products.

The U.S. announced Friday it is eliminating and reducing tariffs on 105 of Ecuadorian exports.

The new exemption covers a range of tropical products imported to the U.S., including coffee, tea, bananas, mangoes, avocados, coconuts, pineapples, cocoa and spices such as nutmeg, according to executive order. It also covers beef, oranges and tomatoes.

The decision comes a day after the U.S. reached a trade agreement with Ecuador and three other Latin American countries to reduce tariffs on a variety of exports. Among products that will see tariffs reduced from 15% to 0% are bananas and cocoa, two of Ecuador’s largest exports. In total, 105 products will now pay no tariff.

Other exports, including shrimp and other seafood, and cut flowers will also see a “substantial reduction” in tariffs, according to Ecuador’s Trade Ministry.

In exchange for the reduction of tariffs on Ecuadorian products, the Trade Ministry has agreed to reduce tariffs on U.S. imports such as machinery, health products, technology and vehicles.

Former trade minister Carlos Rufino said that both the bi-lateral agreement with Ecuador and the general decision to reduce tariffs is good news for Ecuador. “We may be finally returning to a reliable and sensible system of tariffs that producers and exporters can rely on,” he said. “The last few months have been chaotic for many industries.”

Rufino added that political pressure on U.S. President Donald Trump are “major motivators” for the recent decisions. “He is feeling pressure due to rising food costs in the U.S. and it appears that U.S. courts may find his tariff scheme illegal. He is also facing a sex scandal that is affecting his popularity.”