Washington: US Treasury Secretary Scott Bessent has announced that the Trump administration is set to reveal significant tariff reliefs aimed at reducing the costs of coffee, bananas, and other imported goods. These measures are expected to be announced in the coming days.
According to Anadolu Agency, Bessent conveyed to Fox News that while specific measures are challenging to pinpoint, the government is preparing substantial announcements for items not cultivated in the United States. Coffee and bananas are among the commodities slated for tariff reductions, though detailed plans have yet to be disclosed. Bessent indicated that these measures will lead to swift price reductions.
US President Donald Trump earlier promised tariff reductions on coffee, highlighting the administration's focus on reducing import costs. Trump assured that these tariff adjustments would be implemented quickly and efficiently.
Bessent expressed optimism that these changes will alleviate inflationary pressures on the American populace by early 2026. The current annual inflation rate in the US rose to 3% in September, continuing an upward trend since April following the imposition of "reciprocal" tariffs by the Trump administration.
The US Department of Agriculture identifies Brazil as the primary coffee supplier to the US, with Guatemala, Ecuador, Honduras, and Costa Rica leading banana exports. Heightened tariffs on Brazil, set at 50% last July, were partly a response to legal proceedings against former Brazilian President Jair Bolsonaro, as well as concerns over Brazil's treatment of American tech firms.
Coffee prices have surged due to a drought in Brazil and increased tariffs, with New York-traded coffee futures rising over 20% this year. CNBC reports a 45% increase in coffee prices over the past year.
President Trump, in discussions with Brazilian President Luiz In¡cio Lula da Silva, who advocated for reduced tariffs, indicated a willingness to negotiate. Trump expressed confidence in reaching a prompt agreement to lower tariffs with Brazil.