U.S. to ease tariffs on coffee and bananas

Summary

Marketplace Morning Report: U.S. to Ease Tariffs on Coffee and Bananas

Date: November 14, 2025
Host: Sarah Rogers (for the BBC World Service on Marketplace Morning Report)
Main Guest: Simon Evenett, Professor of International Trade, IMD University, Switzerland
Additional Reporting: Matt McGrath, Phil Mercer
Episode Theme:
The episode focuses on economic diplomacy as the U.S. signals plans to cut tariffs on select Latin American food imports—a move expected to impact U.S. grocery prices and hemispheric alliances. The episode also covers global economic updates from China and Switzerland, the surge of fossil fuel lobbyists at COP30, and Australia's charity sector under financial stress.

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Main Theme Overview

The central topic is the U.S. government’s new trade initiatives: easing import tariffs on coffee, bananas, and beef from four Latin American countries, theoretically to lower food prices for Americans and strengthen regional ties amid inflation worries. The show explores the economic and geopolitical motivations, potential global ripple effects, and adjacent shifts in international trade and climate discussions.

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Key Discussion Points & Insights

1. U.S.-Latin America Trade Agreements

(01:27 - 04:10)

• Announcement Details:

  • Donald Trump’s administration will cut or exempt tariffs on key food imports—primarily coffee, bananas, and beef—from Argentina, El Salvador, Ecuador, and Guatemala.
  • Some tariffs remain (e.g., 10% on most goods from three countries, 15% from Ecuador), but “staple foods” are exempt.

• Political and Economic Rationale:

  • The U.S. aims to “build its own influence within the Western Hemisphere” and is signaling a desire for Latin American and North American countries to align more closely with the U.S. rather than China.
  • Trade policy is being employed as both an anti-inflation measure (relieving food prices in the U.S.) and a geopolitical lever.

• Inflation and Consumer Impact:

  • Tariffs have directly contributed to consumer price increases; food inflation is a central concern.
  • “The administration has been finding ways to reduce tariffs, especially in areas which are either really sensitive, like beef, or in commodities which the US doesn't really produce, like coffee and bananas. And Latin America has all three.”
    — Simon Evenett, 02:57

2. Switzerland Trade Deal Talks

(03:26 - 04:10)

• Status of Negotiations:
  • A potential deal to lower 39% tariffs is “getting closer” but not finalized.
  • Unique challenge: Swiss direct democracy means any deal may require a public vote.
  • “There’s two veto players on either side ... President Trump and the Swiss people. And that's not a situation the Americans are used to finding themselves in.”
    — Simon Evenett, 03:32

3. Global Economic Updates

(04:11 - 05:27)

• Swiss Luxury Goods Sector:

  • Richemont (Cartier's parent company) posted a 14% sales increase year-on-year.

• China’s Economic Slowdown:

  • Latest data points to slowing industrial output (+4.9% y/y in October) and retail sales (+2.9%).

4. COP30 and the Fossil Fuel Lobby

(04:57 - 05:27)

• Lobbyist Presence:
  • Record 1600 fossil fuel industry delegates at COP30 in Brazil—outnumbering all national delegations except Brazil.
  • Around 600 registered under “party overflow badges,” possibly influencing negotiations behind the scenes.
  • “There are far more fossil fuel representatives here than from the 10 most climate vulnerable countries combined."
    — Matt McGrath, 04:57
  • Skepticism over how much sway these delegates ultimately have, given ongoing support for phase-out commitments.

5. Australia’s Charity Sector Amid Cost of Living Crisis

(05:27 - 07:49)

• Growth and Pressure:
  • Charity sector revenue up 10% ($143 billion), but demand for food banks and crisis assistance has soared.
  • “The need has never been bigger ... I don't know many families that don't have people living on the edge today.”
    — Kylie Mackey, Asylum Seekers Centre, 06:10 & 06:25
  • Funding competition is intense, reliance on unpredictable fundraising, and government grants only partially fill the gap.
  • Cost of living pressures have cooled donations. Asylum-seekers especially face hardship due to lack of government safety nets.
  • “We are really relying on our sponsors and our donors ... and it's that stability and keeping us sustainable that's really difficult.”
    — Kylie Mackey, 07:13

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Notable Quotes & Moments

• On U.S. Industrial Strategy:

  • "The US Is trying to build its own influence within the Western Hemisphere. This administration has made it very clear that it wants Latin American countries and North American neighbors to orient much more towards the United States and to thin their ties with China.”
    — Simon Evenett, 02:21

• On Food Tariffs and Inflation:

  • “Now, inflation is ticking up for consumers as the tariffs are feeding into higher prices. This has led to concerns about cost of living, which are really salient.”
    — Simon Evenett, 02:57

• On Swiss Trade Deal Uncertainties:

  • "There's two veto players on either side of this: President Trump and the Swiss people. And that's not a situation the Americans are used to finding themselves in.”
    — Simon Evenett, 03:32

• On COP30 and Fossil Lobbyists:

  • “There are far more fossil fuel representatives here than from the 10 most climate vulnerable countries combined.”
    — Matt McGrath, 04:57

• On Charity Sector Pressure:

  • “Basically, the need has never been bigger and I don't know many families that don't have people living on the edge today.” — Kylie Mackey, 06:10

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Timestamps for Important Segments

• 01:27 – Introduction of tariff reduction topic and guest (Simon Evenett)
• 02:21 – Summary of U.S.-Latin America trade deals and their political implications
• 02:57 – Discussion on tariffs, inflation, and U.S. consumer impact
• 03:32 – Update on Switzerland-U.S. trade discussions and the complications of Swiss direct democracy
• 04:11 – Global economic news: Richemont's growth and China's economic slowdown
• 04:57 – COP30: Record fossil fuel lobbyist presence and concerns about negotiation influence
• 05:27 – Australia's charity sector growth, challenges, and effects of the cost of living crisis

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Conclusion

This Marketplace Morning Report episode delivers a swift yet rich briefing on the intertwined themes of trade, geopolitics, inflation, and societal pressures across several continents. With the U.S. looking to Latin America to ease food inflation and reassert regional leadership, listeners get a fresh lens on how global economics and domestic concerns are tightly interwoven. The updates on Switzerland, China, COP30, and Australia’s community challenges round out a global scan relevant for anyone interested in economics, policy, or just everyday impacts on cost of living.

Transcript

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[Sarah Rogers]

Could a white House trade deal with parts of Latin America mean cheaper groceries in the US Live from the uk, this is the Marketplace Morning report from the BBC World Service. I'm Sarah Rogers. Good morning. Donald Trump is set to cut import taxes on coffee, bananas and beef as part of trade agreements with four Latin American countries aimed at easing food prices in the U.S. a tariff of 10% will stay on most goods from Guatemala, Argentina and El Salvador, as will a 15% tax on imports from Ecuador. But staples like coffee, which the US can't produce enough of itself, will be exempt to talk about that. And if Switzerland could also be nearing a deal. Professor of International Trade at IMD University in Switzerland, Simon Evnett Hi Simon.

[Simon Evenett]

Hi.

[Sarah Rogers]

What looks to have been agreed and what impact is that going to have?

[Simon Evenett]

The White House made available four statements of deals that it's cooking with Argentina, El Salvador, Ecuador and Guatemala. The fact that they've put out this package at the same time, really, I think, shows that the US Is trying to build its own influence within the Western Hemisphere. This administration has made it very clear that it wants Latin American countries and North American neighbors to Orient much more towards the United States and to thin their ties with China.

[Sarah Rogers]

And are we seeing an inflationary impact of tariffs as well? Is it hitting the consumer and is.

[Simon Evenett]

That driving things within the U.S. now, inflation is ticking up for consumers as the tariffs are feeding into higher prices. This has led to concerns about cost of living, which are really salient. And the administration has been finding ways to reduce tariffs, especially in areas which are either really sensitive, like beef, or in commodities which the US doesn't really produce, like coffee and bananas. And Latin America has all three.

[Sarah Rogers]

And now what about Switzerland? Tariffs are 39%. Is a deal edging closer there?

[Simon Evenett]

We are getting closer to some type of conclusion. I didn't use the word deal because whether we get a final deal depends on what is the last ask from President Trump and whether the Swiss will be able to accept whatever has been asked of them. And then the other feature which the Americans have actually acknowledged for the first time is in Switzerland as a direct democracy, the people could actually vote on any changes if they involve changes in laws and regulations. And so there's two veto players on either side of this, President Trump and the Swiss people. And that's not a situation the Americans are used to finding themselves in.

[Sarah Rogers]

Simon Evenett, thank you for joining us on Marketplace.

[Simon Evenett]

Thank you very much.

[Sarah Rogers]

All right, let's see the numbers. Well, despite those tariffs, Swiss luxury group Richemont, which owns Cartier, reported quarterly sales were up 14% compared to the same period last year at constant exchange rates. And China's economy has slowed to its weakest pace in over a year. Industrial output grew 4.9% year on year in October, whilst retail sales grew 2.9%, according to the National Bureau of Statistics. Now, Environmental campaigners at COP30 say the proportion of fossil fuel lobbyists attending the UN climate summit in Brazil is its largest ever. The 1600 delegates from oil, gas and coal backgrounds now outnumber every country's delegation except Brazil. The BBC's Matt McGrath.

[Matt McGrath]

There are far more fossil fuel representatives here than from the 10 most climate vulnerable countries combined. What worries some observers is the fact that around 600 of the delegates from oil, gas and coal backgrounds are registered on what are termed party overflow badges, meaning the individuals may influence behind the scenes negotiations. Despite their presence, their impact is questionable. The most recent climate cops have seen strong support from countries for transitioning away from fossil fuels.

[Sarah Rogers]

That was the BBC's Matt McGrath. Now let's head to Australia, where the charity sector was up 10% last year, banking $143 billion in revenue, but they're increasingly on the front line of the cost of living squeeze. Demand for food banks and crisis accommodation services have soared. From Sydney, here's the BBC's film Mercer.

[Bill Cruz]

How many rice have we got?

[Phil Mercer]

Two rice for here and three meat. Feeding those in need is a never ending mission. The Reverend Bill Cruz foundation in Sydney serves more than 400,000 meals each year. Revenue might be at record levels, but there's intense competition for funding between Australia's charities.

[Kylie Mackey]

Basically, the need has never been bigger and I don't know many families that don't have people living on the edge today.

[Phil Mercer]

For Bill Cruz, keeping his services afloat is a daily struggle, dog against dog.

[Kylie Mackey]

You're trying to keep alive, you're trying to keep the service alive. And I know the services that need money, just like we do.

[Phil Mercer]

Government grants make up about half of the revenue charities in Australia receive. They make money too, from investments and selling goods and services. But donations have mostly stagnated. Australians are a generous bunch, but cost of living pressures are affecting their ability to donate.

[Bill Cruz]

I think we feel a huge amount of pressure because people seeking asylum don't have a safety net.

[Phil Mercer]

Kylie Mackey is a manager at the Asylum Seekers Centre in Sydney. It provides vital services for those needing protection. It has 40 staff and an annual budget of around three and a half million dollars.

[Bill Cruz]

The money that we have, it's not reliable and we are really relying on our sponsors and our donors and through different campaigns that we run and appeals that we run, we just don't know what's going to come in at the end of the day. And it's that stability and keeping us sustainable that's really difficult.

[Phil Mercer]

Charities touch almost every part of the Australian economy, from education, health, the environment and social services. Many face significant financial challenges, but they remain a powerhouse of good. In Sydney, I'm the BBC's Phil Mercer for Marketplace.

[Sarah Rogers]

And in the UK, I'm Sarah Rogers with the Marketplace Morning Report from the BBC World Service.

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