• The White House has secured new trade agreements with four Latin American countries, providing targeted tariff exemptions on key food imports.
  • U.S. Trade Advisor Jamieson Greer states the administration expects resulting cost savings to be passed along to consumers.
  • The National Restaurant Association warns that broader planned tariffs could cost the industry $15 billion, threatening small business profits.

New trade pacts with Argentina, Guatemala, El Salvador, and Ecuador will lower or eliminate tariffs on specific imports including Argentinian beef, bananas, and coffee, according to people familiar with the agreements. The moves are designed to alleviate pressure on food prices that have contributed to broader inflationary pressures.

"We expect any savings will be passed along to the consumer," said Jamieson Greer, President Trump's chief advisor on international trade, in comments about the administration's tariff strategy. The targeted relief focuses on products that are less available domestically, though most imports from these countries will still face tariffs of 10-15%.

The announcement comes as the restaurant industry faces severe headwinds. Food costs have risen approximately 40% over the past five years, squeezing margins across the sector. The National Restaurant Association has been lobbying aggressively for further exemptions, warning that planned 30% tariffs on Mexican and Canadian food imports could cost U.S. restaurants over $15 billion annually.

Efforts to provide broader tariff relief have hit a legal snag. A challenge to the President's authority to impose these tariffs is pending before the Supreme Court, with a decision expected before year-end. The outcome could significantly reshape future U.S. trade policy and the administration's reciprocal tariffs strategy.

Without these targeted exemptions, industry analysts suggest menu prices would likely see sharp increases. The administration's approach appears designed to temper domestic price rises without broadly abandoning its protectionist stance. Some agreements also include commitments from Latin American partners not to implement digital services taxes and to improve regulatory standards.

The White House did not immediately respond to a request for additional comment on the timing of the tariff implementations. Parallel talks are reportedly underway with the European Union, Japan, and South Korea, where similar compromises are being negotiated.

Correction: An earlier version of this article misstated the percentage increase in food costs over the past five years. The correct figure is approximately 40%.