Marketplace All-in-One Could Trump's tariffs on Brazil make coffee more expensive?
Aug 6, 2025
The podcast dives into the Trump administration's hefty 50% tariffs on Brazilian coffee, igniting debates over political tensions and economic impact. It highlights how Brazilian coffee exporters are adapting their strategies to navigate these changes. The discussion broadens to include Thailand’s response to tariffs, showcasing the global implications for coffee prices. Additionally, it touches on challenges in European industrial output and the complexities of agricultural trade negotiations, particularly in relation to competing with American markets.
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Political Tariffs Hit Brazilian Coffee
- The U.S. has imposed a 50% import tax on Brazilian coffee as a political move linked to Brazil's former president's trial.
- This tariff affects both Brazilian exporters and American coffee drinkers financially and disrupts global coffee supply dynamics.
Exporters Stunned, Seek Alternatives
- Brazilian coffee exporters were surprised by the tariff and had expected coffee to be exempt as it is not grown in the U.S.
- New export deals with the U.S. have stalled, and producers seek alternatives like increasing local consumption or exporting to other regions.
Tariffs Spark Global Price Volatility
- Brazil's Arabica and Robusta coffee prices largely influence global coffee prices.
- The tariffs cause short-term price volatility as U.S. buyers shift sourcing, but consumer price increases may take months due to stock buffers.