Trump administration said it will reduce import tariffs on coffee and bananas on November 13 — as part of trade agreements with Argentina, Guatemala, El Salvador, and Ecuador, according to BBC News reporting. Meanwhile, on November 14, the administration agreed under a "non-binding memorandum of understanding" (MoU) to cap U.S. tariffs on Switzerland and Liechtenstein at "a maximum of 15 percent," according to a statement from the Swiss government. The Guardian reported that this brings U.S. tariffs on Switzerland, previously set at 39 percent, into alignment with those on neighboring European Union countries. From a supply chain perspective, the U.S. consumes approximately 1.5 billion pounds of coffee annually globally — with Brazil, Vietnam, Colombia, Honduras, Ethiopia, Peru, Indonesia, Mexico, Guatemala, Nicaragua, and Costa Rica being the main coffee supplier countries. Ecuador is the world's leading banana exporter — with Costa Rica, Guatemala, Colombia, and Honduras as other major banana exporters.
The news does little to end the ongoing uncertainty about which tariffs will be applied when and to which goods and countries. In April 2025, Trump declared a "national emergency" over trade deficits with broad trading partners and announced sweeping penalty tariffs. However, multiple revisions have been made to these import duties — and many countries as well as the EU trading bloc are also negotiating. From a supply chain perspective, the Trump 2.0 tariff regime relies on IEEPA (International Emergency Economic Powers Act), Section 232, Section 301, and Section 122 as primary legal instruments. The U.S. Court of International Trade and U.S. Court of Appeals for the Federal Circuit are ruling on the legality of IEEPA use — with SCOTUS (Supreme Court of the United States) final review pending. Reciprocal tariff, fentanyl tariff, steel/aluminum tariff, auto tariff, and semiconductor tariff are the main Trump 2.0 tariff categories.
From a supply chain perspective, Switzerland hosts the world's largest gold refining market (Argor-Heraeus, MKS PAMP, Metalor Technologies, Valcambi); pharmaceuticals (Roche, Novartis, Lonza); machinery and equipment (ABB, Bobst, Bühler); watchmaking (Rolex, Patek Philippe, Audemars Piguet, Richemont, Swatch Group); chocolate (Lindt, Nestlé, Toblerone); and finance (UBS, Pictet, Julius Baer, Lombard Odier) as major export sectors. Switzerland's annual exports to the U.S. are approximately $60+ billion — a 39 percent tariff poses a serious threat to the economy. EFTA (European Free Trade Association) comprises Switzerland, Norway, Iceland, and Liechtenstein. Argentina is building close relations with the U.S. under the Javier Milei government. Guatemala, El Salvador (under Nayib Bukele), and Ecuador (under Daniel Noboa) form Trump's pragmatic allied circle in Latin America.
From a supply chain perspective, the global impact of Trump tariffs includes nearshoring, friend-shoring, onshoring, China+1, Mexico nearshoring, Vietnam shift, and India alternative as primary strategic responses. USMCA (United States-Mexico-Canada Agreement) is planned for renegotiation in 2026. The EU is negotiating with Trump 2.0 at a 15 percent reciprocal tariff level — under the leadership of Ursula von der Leyen. Japan, South Korea, UK, Vietnam, Indonesia, Philippines, Thailand, Israel, Saudi Arabia, UAE, Kazakhstan, Pakistan, Bangladesh, Sri Lanka, Cambodia, Brazil, Colombia, Peru, Chile, South Africa, Nigeria, and Egypt are among countries negotiating bilateral agreements with Trump 2.0. Ultimately, the Switzerland deal and coffee/banana concessions clearly demonstrate that the Trump tariff regime is being developed pragmatically through "reasoned exceptions."
Key Points:
1. Trump reduces coffee/banana tariffs on November 13 — with 4 countries.
2. November 14: Switzerland/Liechtenstein 39% → 15% maximum.
3. Non-binding MoU aligns with EU neighbors.
4. April 2025 national emergency — launching point for broad penalty tariffs.
5. Multiple countries and EU are engaged in tariff negotiations.
