Coffee and cocoa could be exempt from tariffs in trade deals, commerce secretary says
Lutnick said in an interview for CNBC's talk program 'Squawk Box' that President Donald Trump has agreed to set zero tariffs for those natural resources that are not grown in the U.S. in the trade deals he has closed, including the ones with Indonesia and the European Union.
"If you grow something and we don't grow it, that can come in for zero, so if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff, because coffee and cocoa will be other examples of natural resources," Lutnick said.
"So Europe came in with cork, for example. That can come in to the U.S. without a tariff," he said.
A part of the text of the 'Agreement on Reciprocal Trade between the United States and Indonesia' that was published last week by the White House cites natural resources.
It says that the U.S. "may also identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate".
Indonesia agreed with a tariff of 19% to sell its products in the U.S., but could eventually have zero tariff for its coffee, cocoa, or other tropical products.
Lutnick however did not comment on the situation of tropical products coming from countries that still do not have a deal with the U.S., such as Brazil.
Trump threatened to impose a 50% tariff on Brazilian products from August 1 in a move that also involves politics, as the U.S. President complained about the treatment Brazilian courts are giving to former Brazilian president and his ally Jair Bolsonaro.
Brazil supplies a third of the coffee used in the U.S., the world's largest drinker of the beverage, and that trade could be heavily impacted if tariffs are indeed imposed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
5 hours ago
- The Guardian
ESPN reportedly selling equity stake for RedZone and other NFL properties
ESPN has reached a deal with the NFL to purchase RedZone, NFL Network and other league holdings, the Athletic reported on Friday. The NFL will receive equity in ESPN that 'is potentially worth billions' in exchange, according to the report. An official announcement is expected next week, ending a four-year period of complicated, on-and-off negotiations. Both sides declined to provide comment to the Athletic. In addition to RedZone and NFL Network, ESPN will gain access to seven more regular-season games and the NFL's fantasy football operations, as well as the potential to integrate sports betting and other special features. The NFL's equity stake in ESPN could be as much as 10%, CNBC first reported and the Athletic confirmed. An ESPN-NFL deal would require regulatory approval, a process that could take up to a year to complete. The two sides already have a cozy relationship. ESPN pays the NFL about $2.7bn per year to air a total of 25 games, including Monday Night Football. The network also holds the rights to the Super Bowls in 2027 and 2031. Friday's reported agreement comes as ESPN is preparing to launch its direct-to-consumer service, with subscribers paying $29.99 per month to bypass cable and satellite providers to view all of the network's programming through the ESPN app.
Reuters
7 hours ago
- Reuters
IMF lowers bar for Argentina reserves accumulation, next review due after local October elections
NEW YORK, Aug 1 (Reuters) - The International Monetary Fund lowered the bar for Argentina's reserve accumulation targets through 2026 in its $20 billion program and removed a review that was due before the country's October legislative elections as detailed in a report published Friday. Net international reserves accumulation targets were lowered through 2026, leading to a steeper accumulation curve as the 2027 target was kept in place. "The NIR accumulation target for end-December 2025 has been lowered to mainly reflect the initial shortfalls, which are gradually being addressed through the agreed corrective actions," the report said. The announcement came a day after the IMF board completed the first review of the $20 billion program approved in April. Disbursements of around $14 billion have been made for Argentina so far as part of this new program. "While early efforts to re-access international capital markets are commendable, Argentina's capacity to repay its Fund obligations remains subject to exceptional risks and continues to hinge on strong policy implementation to improve reserve coverage and sustain market access (at more favorable terms) by the time repayments to the Fund come due," said the report from IMF staff.
Reuters
10 hours ago
- Reuters
NFL deals Red Zone, NFL Media assets to ESPN in billion-dollar agreement, the Athletic reports
Aug 1 (Reuters) - The NFL and Disney's (DIS.N), opens new tab ESPN have reached a deal, potentially worth billions, placing many of the league's media holdings with the sports network in exchange for equity in ESPN, the Athletic reported on Friday. ESPN is expected to have access to RedZone, NFL Network, seven more regular-season games and the NFL's fantasy football business, the report said, citing sources briefed on the agreement. There is also a possibility of integrating special features, including betting, and potentially more assets too. The four-year on-and-off discussions have led to what is said to be a complicated agreement, the Athletic report said. An official announcement is expected next week. Disney is set to report results on Wednesday. Both ESPN and the NFL declined to comment on the report when contacted by Reuters. The news of the deal comes as Disney is set to launch its new streaming service, named ESPN, this fall, providing access to ESPN networks, including professional and college football and basketball games. The new service will cost $29.99 per month and is part of the media company's effort to tap sports fans who have never subscribed to traditional television.
