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.

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.

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

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

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

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.