Those promising trade deals are part of President Donald Trump’s “reciprocal trade” strategy and will expand U.S. export opportunities while easing, or removing, some tariffs on select Latin American goods.
Ecuador, for example, is expected to see decreased tariffs on products like bananas, coffee and cocoa.
Some tariffs will remain but certain U.S. duties are being cut or removed under the frameworks, Reuters reported.
A U.S. duty on Argentine beef, originally 10%, is expected to be exempted.
Moves like these appear aimed at easing the crunch on Americans at the grocery store, but the deals also have an economic security angle. There are also provisions for critical minerals, trade subsidies and intellectual property protection.
A dual deal with Switzerland and Liechtenstein, who have close economic ties, was also announced.
“Everybody in business would like confidence and certainty moving forward. Trump's using these (tariffs) to level the playing field, right? The G20, the richest 20 countries on the globe, have a 200-300 percent higher tariff on us than we have on them,” Dave Brat, a Liberty University vice president and former member of Congress, said on Washington Watch Friday.
Trump is clearly responding to cost-of-living concerns in the U.S., Brat told show host Jody Hice.
Approaching this from a purely economical angle would be preferred, but it’s not a realistic expectation. The political impact is always nearby, he said.
In fact, many have reacted to Trump's backtracking on tariffs as admission that the cost of coffee, for example, trickles all the way down to the customer. A pound of coffee has jumped a whopping 41% since the fall of 2024, according to an Associated Press story.
When he introduced tariffs to balance unfair trade with U.S. trading partners, the assurance from Trump was Americans wouldn't feel economic pain in the checkout line.
“It would have been ideal to have certain fair, flat rate tariffs set way ahead of time, but that's not the real world, right?" Brat observed. "The real world is different countries have different leaders, who are different degrees, America first and respectful of the U.S.”
Trump on multiple occasions has challenged European countries to "pay their fair share" in trade, most recently in April 2025. That is when he declared a national emergency over the U.S. trade deficit and criticized the EU for unfair trade practices.
This culminated in a landmark trade deal announced on July 27–28, where the EU agreed to a 15% tariff on its exports to the U.S. (on autos, pharmaceuticals, and semiconductors) and committed to $750 billion in U.S. energy purchases and $600 billion in U.S. investments by 2028
Summer EU trade deal working out
As of now, Europe is following through on these commitments under the new agreement, which aims to balance trade and ensure European nations contribute more equitably to the U.S. economy, Brat said.
“They're going up from 1 or 2 percent of GDP spent on military and defense and patrolling the seas to 3 or 4, in some cases 5 percent. Even India, who's been relatively quiet on that front, taking responsibility for the size of their economy and people, is starting to play a role. So, Trump should be commended for the huge moves on geopolitics.”
Americans will still have to “ride out the ripples” on some products as events unfold, Brat said.
Inflation rises quickly through anyone’s economy, but it’s not a rapid descent on the other side.
Trump’s tariff plan is good for America, but it may be the next president who benefits from their effect, Brat said.
“Biden had 20% inflation, 21% inflation over his four years," Brat pointed out. "Trump was at 1-1.4% prior to Biden.”
As concern for affordability increases, Trump’s greatest challenge could be messaging.
“So huge inflation under Biden and unfortunately, prices ratchet up 20%, but they never come down. People say affordability, yes, they're feeling that, and it's real. Trump needs to explain ‘that ain't me. That was Biden and the Federal Reserve printing way too much money out of COVID,” Brat said.
Trump is bringing in more than $2 trillion in domestic pledged capital investment and more than $10 trillion in pledged investment from abroad, Brat said.
“That capital is the No. 1 determinant of economic growth. So that will guaranteed help the economy going forward, but that capital probably takes two, three, four years to even start having its effect.”
Still, economic indicators are mixed.
The Federal Reserve Bank in Atlanta estimates 4% third-quarter growth, but there are sustainability concerns.
According to the Center for Econometric Model Research at Indiana University, projections for GDP growth for 2025-2028 average about 1.95%. They’re just 2.10% for 2029-2046.
It’s not time to start “cheerleading” for the economy, Brat said.
The real key to the economy
A strong stock market is good news but that’s a secondary economic battle for Trump.
“That just goes to the rich top 10%,” Brat said.
That’s not the demographic Trump needs to reassure. In order to build and maintain support from the working classes, the president must fix education.
“If you want the economy to get going, you cannot have 12% literacy rates, 12% reading rates for poor kids in Chicago's inner city," Brat argued. "How in the world can you have an economy, right? If Trump hits that right, the black, brown, blue-collar workers will stay strong with Trump If he shows he really cares about them."
