President Trump rewards new allies in Latin America with trade deals

“We use tariffs as a negotiating tool and to protect domestic industry,” a senior U.S. official said. He added: “We believe that these agreements will allow us to move towards balanced trade, achieve reciprocity and reduce deficits in the long term.”

advertisement It happened at a meeting where senior officials detailed the structure of the deal. These are “reciprocity” agreements that maintain U.S. tariffs of 10% on Argentina, Guatemala and El Salvador and 15% on Ecuador, while forcing those countries to further open their markets to U.S. agricultural and industrial products. The official said the aim was to “rectify historical imbalances” and “end decades of structural deficits.”

The deal includes promises such as eliminating import licenses, raising health barriers, strengthening intellectual property protections, accepting U.S. technology standards and waiving digital taxes affecting North American tech giants. In parallel, Washington is eliminating tariffs on goods it doesn’t produce, such as coffee, cocoa and Ecuadorian bananas. “This is a realistic model. We protect what is ours and make it more flexible where there is no industry,” said another administration official.

This decision has a clear political undertone. In Argentina, Javier Millay has made his closeness with Trump part of his identity. Both governments have publicly argued that they are natural partners in opposing the “globalist bureaucracy” and defending orthodox policies. Washington interprets that familiarity as an opportunity. “Miley is willing to make fundamental reforms and understands the word reciprocity,” the source said.

In Guatemala, President Bernardo Arevalo has had a complicated relationship with Washington, marked by tensions with the country’s conservatives. His willingness to push for institutional reform and maintain an open dialogue with the United States is seen as a positive sign.

El Salvador is a special case.

Nayib Bukele maintains a close personal relationship with Trump and has worked with him on issues including national security, fighting organized crime and immigration. “El Salvador has shown tangible results in internal security, which is important to us,” the official explained.

of Relations with Ecuador are at a delicate period. It is characterized by criminal violence and economic vulnerability. Daniel Novoa sought outside support to support his agenda and quickly accepted the terms of the agreement. “Ecuador wants stability and access to investment, and he is willing to accept a framework that other governments have previously rejected,” the same source added.

The agreement comes at a time when President Trump is making tariff policy a central part of his presidency. Since August 1, the administration has announced similar agreements with Asian countries and strategic partners in the Middle East. “This is a complete redesign of the international trading system, and it is not an isolated action,” the president’s economic adviser said.

The White House claims these deals can reduce the trade deficit. And securing the supply chain, which Washington considers critical. In their interpretation, the signatories accepted an arrangement that had seemed impossible for decades. “It’s not rhetoric. There is a clear policy of tariffs and clear tools, so the issues that have been stuck for 25 years are being resolved,” said a senior foreign trade official.

Washington is therefore sending a double message. Economically, because it puts pressure on other countries to enter into the logic of “tariff reciprocity”. And the political reason is to recognize governments that, due to ideological affinities or strategic expediency, have decided to side with the new trade order that Trump is trying to impose.