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The United States last week secured a framework for new trade agreements that will reduce one of the country’s highest specific tariff rates while granting certain tariff exemptions to four countries in Central and South America.
In a framework agreement with Switzerland and Liechtenstein, the United States announced it would reduce the current 39 percent tariff imposed on Swiss imports since early August.
Meanwhile, the White House also announced it has secured deals with Argentina, Ecuador, El Salvador and Guatemala aimed at boosting trade and securing supply chains in the Western Hemisphere. The United States plans to finalize deals with four countries in the coming weeks, according to a White House fact sheet.
The announcements came in the same week that the United States formalized a related trade deal with South Korea, strengthening provisions of a framework agreement the two countries reached in July. The United States has also signed a trade war truce with China and deals with several other countries in Southeast Asia in recent weeks, adding to a list of deals and frameworks with global trading partners.
Here’s a look at the latest framework agreements with Argentina, Ecuador, El Salvador, Guatemala, and Switzerland and Liechtenstein.
Switzerland and Liechtenstein
The United States plans to cap tariffs on imports from Switzerland and Liechtenstein at 15 percent as part of a framework agreement between the three countries. According to a joint statement released by the White House, the restriction would also include possible future Section 232 duties on pharmaceuticals and semiconductors originating in Switzerland and Liechtenstein.
Swiss goods have been subject to a 39% tax on the country since August 7, when Trump imposed a series of retaliatory tariffs. The framework maintains the tariff rate set by Trump for Liechtenstein at the time.
According to the joint statement, these countries plan to formalize this agreement by the first quarter of next year.
According to the joint statement, if the agreement is finalized, the two European countries will eliminate tariffs on all industrial goods, seafood and some agricultural products of the United States, while imposing quotas on some other agricultural products. These countries will also combine with Switzerland’s $200 billion in investment in the United States over the next five years of $200.3 billion. A third of the investments are expected to be made in 2026.
Switzerland will also expand market access for automobiles, medical devices, as well as some meat and dairy products, by adjusting some regulatory restrictions and recognizing US agency standards, such as federal motor vehicle safety standards.
Argentina
As part of a framework agreement with Argentina, the US announced it would eliminate counter-tariffs on “certain inaccessible natural resources” as well as off-patent materials used to manufacture drugs. Imports from Argentina currently face a 10% base rate tariff.
Meanwhile, Argentina plans to expand market access for parts of US products, including pharmaceuticals, chemicals, machinery, information technology goods, medical devices, motor vehicles and a range of agricultural products, including beef and poultry, according to a joint White House statement.
As part of this effort, Argentina is lifting and simplifying some regulatory restrictions on US exports. It also accepts imports of vehicles that meet US federal motor vehicle safety standards, as well as medical devices and pharmaceuticals that meet FDA specifications.
The joint statement also indicated that the United States may consider the agreement’s provisions when imposing Section 232 tariffs in the future, such as those already in place on sectors such as steel and aluminum.
Argentina and the United States will now work to finalize the agreement, although no timetable has been set for implementation.
Ecuador
According to a joint statement released by the White House, the United States and Ecuador agreed on a framework for mutual trade that includes the elimination or reduction of Ecuador’s tariffs on agricultural exports to the United States.
The South American country agreed to reduce or eliminate tariffs on tree nuts, fresh fruit, legumes, wheat, wine and distilled spirits on a per-sheet basis. Ecuador also agreed to eliminate variable tariffs on many agricultural products under the Andean price band system, which sets minimum and maximum prices for agricultural products imported by the Community of Andean Nations.
According to the joint statement, the framework includes removing non-tariff barriers to Ecuadorian food and agricultural products and reforming import licensing systems and registration facilities to reduce barriers to US agricultural exports.
Outside of agriculture, Ecuador is committed to reducing or eliminating tariffs on US machinery, health products, information and communications technology, chemicals and motor vehicles, the statement said. In turn, the United States agreed to reduce countervailing tariffs on certain eligible Ecuadorian exports that the United States cannot grow, mine or produce in sufficient quantities.
El Salvador
According to a joint statement released by the White House, the United States and El Salvador agreed to a reciprocal trade framework in which El Salvador commits to simplifying regulatory requirements and approvals for U.S. exports, including vehicles and auto parts manufactured to U.S. safety and emissions standards. The Central American country also agreed to accept FDA certificates for medical devices and pharmaceuticals.
For agricultural products, El Salvador agreed to ensure that US exporters are not restricted by the use of certain cheese and meat terms in the data sheet.
The United States, in turn, will eliminate reciprocating tariffs on El Salvador’s exports that cannot be grown, mined, or naturally produced in sufficient quantities in the United States, and on textiles and apparel originating under the Dominican Republic-Central American Free Trade Agreement, according to the joint statement.
Guatemala
The United States and Guatemala agreed to a mutual trade framework aimed at reducing trade barriers, supporting regulatory cooperation and strengthening agricultural trade, according to a joint statement released by the White House.
According to the statement, Guatemala agreed to remove non-tariff barriers, including simplification of regulatory requirements and approvals for US pharmaceutical products and medical devices. The Central American country also agreed to remove import restrictions on refurbished goods and adopt US car standards.
Regarding agriculture, Guatemala is committed to preventing barriers to US products in its market and maintaining science-based and risk-based regulatory frameworks, according to the statement. The country also agreed not to restrict market access due to the use of certain cheese and meat conditions.
The US, in turn, agreed to eliminate countervailing tariffs on textiles and apparel originating under DR-CAFTA, a fact sheet said.
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