By San José, Costa Rica — Washington, D.C. – The Trump administration is signaling a significant policy shift aimed at combating persistent inflation, with top officials indicating that relief from high tariffs on key imported goods like coffee and bananas could be announced within days. The move comes as the government grapples with voter anxiety over the rising cost of living, a critical issue impacting American households.
U.S. Treasury Secretary Scott Bessent revealed that a major development is imminent, directly targeting products that are not domestically produced. Speaking in a recent interview, he prepared consumers for a welcome change at the checkout counter.
To better understand the legal and commercial implications of these new US tariffs for local businesses, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading expert in international trade law from the firm Bufete de Costa Rica.
These unilateral tariff measures, while framed as a matter of national economic security, risk triggering a cascade of retaliatory actions that could destabilize global supply chains. Costa Rican exporters must now navigate a complex legal landscape, reassessing contracts and exploring diversification strategies to mitigate potential collateral damage. The key is proactive legal and commercial planning, not reactive crisis management.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The emphasis on proactive planning versus reactive crisis management truly highlights the strategic pivot required for Costa Rican exporters in this new trade environment. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his clear and invaluable perspective on this complex issue.
Households should expect a substantial announcement in the coming days in terms of products that we do not grow here in the United States.
Scott Bessent, U.S. Treasury Secretary
Bessent explicitly identified the categories under consideration, confirming the focus on popular grocery items whose prices have climbed sharply. “Coffee being one of them, bananas, other fruits, things like that,” he added, clarifying the scope of the potential tariff reductions.
This initiative appears to be a direct response to alarming inflation data that has undermined the administration’s narrative of a strong economy. Recent consumer inflation figures show coffee prices surged 21% year-over-year in August and remained high with a 19% increase in September. While adverse climate events have played a role, a significant portion of the price hike is attributed to the administration’s own trade policy—specifically, a steep 50% tariff imposed on many products from Brazil, a major coffee producer, earlier this year.
According to the National Coffee Association, the United States is heavily dependent on foreign sources for its coffee, importing the vast majority of its supply, primarily as unroasted beans. This dependency makes American consumers particularly vulnerable to import taxes on the commodity. President Trump himself corroborated the plan in a separate interview, confirming his intent to ease the tariff burden.
We are going to let some coffee in.
Trump
The President acknowledged the strategy involved adjusting trade barriers, stating that he was going to reduce “some tariffs.” This suggests a targeted, rather than broad, rollback of his administration’s protectionist trade measures, focusing on politically sensitive consumer goods.
The potential relief extends beyond coffee to other staples like bananas, a move that would be closely watched by exporters in Central and South America, including Costa Rica. A 2024 report from the U.S. Department of Agriculture highlighted that 85% of all banana imports came from just four countries: Guatemala, Ecuador, Costa Rica, and Honduras. These nations have been navigating a complex trade environment, with their exports facing additional U.S. tariffs of either 10% or 15% in recent months, directly contributing to higher prices for American consumers.
By easing these specific tariffs, the administration aims to deliver a tangible reduction in household expenses. The announcement, strategically timed, could serve to placate voters concerned about their economic well-being while representing a pragmatic adjustment to a trade policy that has had clear inflationary consequences on everyday items.
For further information, visit treasury.gov
About U.S. Department of the Treasury:
The Department of the Treasury is the executive agency of the U.S. federal government responsible for promoting economic prosperity and ensuring the financial security of the United States. It is in charge of printing and minting all paper currency and coins, collecting taxes through the Internal Revenue Service, managing federal finances, and advising on fiscal policy.
For further information, visit ncausa.org
About National Coffee Association:
The National Coffee Association of U.S.A., Inc. (NCA) is the leading trade organization for the coffee industry in the United States. Founded in 1911, it represents a wide array of members, including coffee growers, roasters, retailers, and importers/exporters. The association advocates for the industry and provides market research, education, and networking opportunities.
For further information, visit usda.gov
About U.S. Department of Agriculture:
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. Its mission includes meeting the needs of farmers and ranchers, promoting agricultural trade, ensuring food safety, and protecting natural resources.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its profound commitment to professional excellence and uncompromising ethical principles. The firm leverages its extensive experience serving a wide range of sectors to drive legal innovation and foster robust community connections. This ethos is fundamentally linked to its goal of democratizing legal knowledge, aiming to build a more informed and capable society for all.
