The United States has announced a series of framework trade agreements with Argentina, Ecuador, Guatemala, El Salvador, Switzerland, and South Korea.
The Trump administration said reciprocal tariffs of 10–15% will remain across most imports from Argentina, Ecuador, Guatemala and El Salvador, but will be removed or reduced for selected items.
Key developments
• Tariffs lifted on goods that the US cannot produce in sufficient quantities, including Ecuadorian bananas, coffee, and similar agricultural products.
• Argentina gains access for US cattle and eases restrictions on dairy imports, while lowering tariffs on medicines, chemicals, machinery, medical devices and vehicles.
• Intellectual property protections in Argentina will be strengthened, alongside cooperation on pharmaceutical “friendshoring”.
• The US continues supporting President Javier Milei with a $20bn credit line and financial assistance for the peso.
• El Salvador and Guatemala will see reduced tariffs on textiles and apparel.
• Fuller reciprocal agreements for all four Latin American partners are expected within two weeks.
• With Switzerland, the US will lower tariffs to 15%, ending a months-long dispute. Switzerland will invest $200bn in the US, shift manufacturing operations, ease agricultural barriers, and purchase additional Boeing aircraft.
• The US–South Korea deal includes a $150bn investment in US shipbuilding and $200bn for wider industrial sectors. Washington will cut tariffs on Korean autos to 15%, support Seoul’s ambitions in AI, shipbuilding, and the nuclear sector, and approve cooperation on nuclear-powered submarines.
Source: Financial Times, Reuters
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