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The Trump Administration has announced that the U.S. has come to framework trade agreements with four Latin American countries: Argentina, Ecuador, El Salvador, and Guatemala. All four deals are focused on opening market access for American exports while providing tariff relief for the import of (primarily agricultural) products not available in the U.S., such as bananas and coffee.&nbsp;

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Argentina: The administration announced that Argentina will provide preferential market access for U.S. goods exports, including certain medicines, chemicals, machinery, information technology products, medical devices, motor vehicles, and a wide range of agricultural products, including beef and poultry. The United States will also remove the reciprocal tariffs on certain natural resources and non-patented articles used in pharmaceutical applications. In addition, the United States agreed to consider the Agreement's effect on national security, including when taking trade action under Section 232. The administration also stated that Argentina has committed to addressing structural challenges cited in USTR’s 301 report, paving the way for 232 and 301 relief.

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A 10% baseline tariff levied on non-exempt imports from Argentina remains in place. See the fact sheet <a id="OWA79a09908-87c7-ae3f-0aaa-5c5b2e5382a4" data-auth="NotApplicable" href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001eeYnuIScamgxYzKIbbGa4JCh77OtAGs0JOt4Wp_32QhS99EQcUjrj4zhYt0IUDgJrldT40FBKEgCL_EQs4EHBZ9LuOyMB9tl9gQ1mBLqInWggM2uyaHOJMehXwJhRRQUey2iMjGVdfmL_jPTsuBbexc6rWiIOYDILFmzhW6xlFoS84FPqjKgwy9mnqu1205-dcQKAh2_zY9YOYY8__9ZVyqyF5KxnumkOzSjVUVm-MQdXQ-XUHwts_W97Sy9vYMIQdIYlq0AMPSxm1adwlXg6xWt3LVYI9rCFo8sMsMJoRTMRIHAmoAOrRM7uziMQRsDlAeEiuGKBd5DMr7_vYxXSwX9G2P6pa5xBEDY4JsF7Ww=&amp;c=AG4O9Ruu7-QC0nMEI5tMU-gdvtIs5BtWTdrgysH1gUr1fIGPvcXMlw==&amp;ch=RliGVrEj7t4PWGh901Zfapt4VHdz0U0lezqYUrHYI5J5ML8B2YGqAQ==">here</a>.

Ecuador: The administration announced that Ecuador has committed to reducing or eliminating tariffs in key sectors for the United States, including machinery, health products, ICT goods, chemicals, motor vehicles, and certain agricultural products. Ecuador also intends to establish tariff-rate quotas on several other agricultural goods. The United States has committed to removing its tariffs on certain exports that cannot be grown, mined, or naturally produced in the United States in sufficient quantities. Ecuador has also agreed to address issues identified in USTR’s 301 report. In addition, Ecuador agrees not to impose digital service taxes that discriminate against U.S. companies and to support the adoption of a permanent moratorium on customs duties on electronic transmissions at the WTO.

A 15% baseline tariff levied on non-exempt imports from Ecuador remains in place. See the fact sheet <a id="OWA7ae44a87-430d-9254-1c55-550daa4e35c1" data-auth="NotApplicable" href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001eeYnuIScamgxYzKIbbGa4JCh77OtAGs0JOt4Wp_32QhS99EQcUjrj4zhYt0IUDgJyt988a4c_9QXHoBL0lC-eJyS65f-EDm0tZsKpeLHwaVWs_npV092LuqtQlM1iUsaYk38W0odBei-_XxHYFD9RYE5Cj3Ew-c1bfGAjpI0f5q296xos0aLCxNgUEFBU8hTfqAeRJEHLnzJ9QMqEnKJgsEmqQHxKNJxFRu_1Z0fFCZyWqUY9qLq53X_gKhuvLbLQXCv5JtS-5UTFuNTIOMX68xr7D6HR4KqAdfujZiCrz6QWyBP4FED-W67sQM0sIhHcrlMNSB9cNfI-knlq-Nu2Q==&amp;c=AG4O9Ruu7-QC0nMEI5tMU-gdvtIs5BtWTdrgysH1gUr1fIGPvcXMlw==&amp;ch=RliGVrEj7t4PWGh901Zfapt4VHdz0U0lezqYUrHYI5J5ML8B2YGqAQ==">here</a>.

El Salvador: El Salvador committed to addressing a range of non-tariff barriers, including streamlining regulatory requirements and approvals for U.S. exports, such as accepting vehicles and automotive parts built to U.S. motor vehicle safety and emissions standards and accepting FDA certificates for medical devices and pharmaceuticals. The U.S. will also gain easier market access for agricultural exports, including meat and cheese products. El Salvador has also agreed not to impose digital services taxes or erect barriers that discriminate against U.S. firms.

A baseline 10% tariff levied on non-exempt imports from El Salvador remains in place. See the fact sheet <a id="OWA2956d461-940e-b032-d5bb-21fba70fe7e3" data-auth="NotApplicable" href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001eeYnuIScamgxYzKIbbGa4JCh77OtAGs0JOt4Wp_32QhS99EQcUjrj4zhYt0IUDgJOctaSjJ3_L_BCo1YDBEucehOvfZr1xUdrwBd7E0uvj3heQfusvNJbeuCwV0jpyZ48ECU9VB2_NrmronfIlF78QPX2oX8Gz_khDDPI8lclqakUZMHSogzpaEzkCJdADLMEVO04AkxOjlP3aU516MUD-TFyfXWbtnGAwQN-3b31aweoMUpD5cjYNcfuT_4ZNRVQSO-Cdtor-_4vxHRJwws9V15X2bpB3evcIfg1a6RxvGt736F-SYobd_IUqFidTsEHGKEdjphzRoxnhjQs0TsOCibJxQI2NcYX6nrhqCM9Ukp4Q2aEozJQqBbGNdDh_om18k26WWQdISEleYLJWJXvPCmg4DX-YHOdP_zMO7T7C9DSrH4ZPbGdmk4dV1uA8FFsUzGzIvElEKhrH3hUuwXBElyftTbX2zrcUlNvk4pB376XbZqZfC23g==&amp;c=AG4O9Ruu7-QC0nMEI5tMU-gdvtIs5BtWTdrgysH1gUr1fIGPvcXMlw==&amp;ch=RliGVrEj7t4PWGh901Zfapt4VHdz0U0lezqYUrHYI5J5ML8B2YGqAQ==">here</a>.

Guatemala: Guatemala also committed to addressing non-tariff barriers restricting U.S. market access by streamlining regulatory requirements for U.S. exports, including pharmaceutical products, and by accepting U.S. auto standards. Guatemala also committed to addressing intellectual property rights issues identified in the USTR’s 301 report. In addition, Guatemala will refrain from imposing digital services taxes that discriminate against U.S. digital services. It will support a permanent multilateral moratorium on customs duties on electronic transmissions at the WTO.

A baseline 10% tariff levied on non-exempt imports from Guatemala remains in place. See the fact sheet <a id="OWA3ab384dd-b436-d86a-3a9a-c2501643baab" data-auth="NotApplicable" href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001eeYnuIScamgxYzKIbbGa4JCh77OtAGs0JOt4Wp_32QhS99EQcUjrj4zhYt0IUDgJmTHRUaH9u8TJZUamSIQPn_yeH3iNkEiuTP1WWCsDJVq1mYTtxMczXe0dkghZIFkAXPVFD8qh6Otf7neeKi4jzDW-8sGeOXV0rzBc9-7UIu8ETDd1c-Cbk4afTrIcuxFI839-Zth0q7bMvIs-TbX1mOQHQeyh5IvZg3UO9JGznzE6-R0WHLIwn1d0O142r4o5ISK0mwoB3o8bE1LJXhNf9Skd_KkChRvWXJRMYsSJX0LnjVBJvNyxD7T-08YQFsCd3w3YLBgqtG2_QQGvlwbPVcEDqlk08UaUvicLNvuHpoJMF9QVdPrcptP64hl0zJMvYDPJnOC7zfGskpTXg6Os7cCsp_1Lwf59SWrSqzW4GrlpSCYDEZz_aiURLILlu_tXLfh8BpLfeclBEiFIoj5bXrVk85r9UxahzwpcjBJW2Gvg5nXzujgGpA==&amp;c=AG4O9Ruu7-QC0nMEI5tMU-gdvtIs5BtWTdrgysH1gUr1fIGPvcXMlw==&amp;ch=RliGVrEj7t4PWGh901Zfapt4VHdz0U0lezqYUrHYI5J5ML8B2YGqAQ==">here</a>.

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On November 14, the U.S. and Switzerland <a id="OWAe61cbde3-80dd-d634-a5e2-166dd476feb2" href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001eeYnuIScamgxYzKIbbGa4JCh77OtAGs0JOt4Wp_32QhS99EQcUjrj4zhYt0IUDgJKwkX_Hbz6w7uxWIQZ_qGNLdbhN6nfY0IICpPKOBXpl7Wdy5Zqo1myUPDh_R-LNN1JahbhFNpujcfr8nzy2PIYqzMnUSPQ2eq68bgMeiOCCaFFcI9Pk5KoIvs_QyDSarXwSGeGpvUk6huA6WQLKb9ZLmrowT07JF3FT9s3BioUPRq8njhvaQQ8JyuY1AtCyO3Al_JvhlsZXM0VArJ4Oqqn9Ydr6y351qYGXXAtcbzPoNNU0bGsWHbKw==&amp;c=AG4O9Ruu7-QC0nMEI5tMU-gdvtIs5BtWTdrgysH1gUr1fIGPvcXMlw==&amp;ch=RliGVrEj7t4PWGh901Zfapt4VHdz0U0lezqYUrHYI5J5ML8B2YGqAQ==" data-auth="NotApplicable">released a joint statement</a>&nbsp;that the two countries had reached an agreement on a trade deal framework. Key points from the deal include:

Switzerland agreed to invest $200 billion in the U.S. over the next five years, including a commitment of $67 billion by the end of 2026. These investments will likely be structured similarly to the deals struck with Japan and South Korea, albeit focused on sectors with a strong Swiss presence, such as chemicals and pharmaceuticals. To support these investments, Switzerland will invest in labor force development in the U.S. via registered apprenticeships and other high-value training programs. 

The U.S. will levy the same tariff scheme on Swiss imports as on imports from the European Union; the U.S. will apply the higher of the most-favored-nation rate or a baseline of 15%, with section 232 tariffs also not exceeding 15%. The U.S. will also apply the same tariff rates to imports from Switzerland’s customs union partner, Liechtenstein, correcting an earlier oversight that had resulted in Liechtenstein facing a significantly lower rate. 

U.S. firms will gain increased and easier market access with Swiss commitments to remove tariffs across the agricultural and industrial sectors. This includes U.S. fruits, beef, poultry, alcoholic spirits, and chemicals. Switzerland will also refrain from implementing “harmful” digital service taxes.

Tariff Exemptions for Agricultural Products

In addition to the exemptions included in the above trade deals, the <a id="OWA431a51f8-3023-2601-076f-f37d5052c4d7" href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001eeYnuIScamgxYzKIbbGa4JCh77OtAGs0JOt4Wp_32QhS99EQcUjrj4zhYt0IUDgJz5Ymt0tSpyjJ9eA1vYL1NSabxRXZbDzZOUXop5M7I6mbSIFdfvXi45rV3X-zHh58mqs6T003OkRsS5OQta1uZUXtQ5w_CAcCJFg6FolbbsFxyM_m2jSH9-7GhK25E7gzKk8x5p0gR2lpAP24gSLDpct36A4jQPM7tP2Nhe2EKCQAdtPKN1nloOOzHros-_49oVN5_21xVn07wXmgb5AOCFwVjRHxw6STa5G6d95RwomOzV0pzHL-LY2K748xNS4-wRJj6x-NSbI-OBYKonUMlj18LKLtrtqLCbKuR39fH_p1E7u9b8M5vsMAWffhQWJfxexh5jN5CwKHM2bObAc_iQ==&amp;c=AG4O9Ruu7-QC0nMEI5tMU-gdvtIs5BtWTdrgysH1gUr1fIGPvcXMlw==&amp;ch=RliGVrEj7t4PWGh901Zfapt4VHdz0U0lezqYUrHYI5J5ML8B2YGqAQ==" data-auth="NotApplicable">White House announced</a>&nbsp;on November 14th that reciprocal tariffs on a variety of agricultural products would no longer be applied. The exemptions apply primarily to farm products that the U.S. does not produce in sufficient quantities domestically, including coffee and tea, tropical fruits, cocoa, bananas, tomatoes, and beef.

The products that will no longer be subject to the reciprocal tariffs have been added to <a id="OWAde980997-6a03-0649-4322-fa71e533ebf8" href="https://rnn4sp8ab.cc.rs6.net/tn.jsp?f=001eeYnuIScamgxYzKIbbGa4JCh77OtAGs0JOt4Wp_32QhS99EQcUjrj4zhYt0IUDgJaJCJyZf30iTcWBxMLUSIH6f9LWMTrmEIQkFnEXuh7Vbvl6FkI6P7Kx6Ff75rFr8_oDSJC8Sj3ah5nCfdL7Gkj82A-tJrM6DXZNuXuiHqy4LlHc29U8QEW9qLMzCmlO4ouXLS2iQVGkriCPpobmSkRw==&amp;c=AG4O9Ruu7-QC0nMEI5tMU-gdvtIs5BtWTdrgysH1gUr1fIGPvcXMlw==&amp;ch=RliGVrEj7t4PWGh901Zfapt4VHdz0U0lezqYUrHYI5J5ML8B2YGqAQ==" data-auth="NotApplicable">Annex II</a> of Executive Order 14257.

China continues to unravel its October restrictions on critical mineral exports, implemented in accordance with the U.S.-China agreement struck between Presidents Trump and Xi in South Korea. This includes:

The suspension of the global implementation of rare-earth export controls, which had been put in place on October 9.

The ban on exports of gallium, germanium, antimony, and graphite to the U.S. or American end users has been lifted officially. A full agreement on the lifting of rare earth export bans is still being negotiated between American and Chinese trade officials. 

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Are you concerned about the impacts of the outlined trade issues? Please contact Sarah Helton, Michael Best Strategies’ Trade Practice Lead at sarah.helton@michaelbest.com&nbsp;for assistance.

Forklift lifting a shipping container between large stacks of multicolored containers at a port during sunset.

Trump Trade 2.0: Flurry of Early November Deals Announced

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