Global coffee prices plunge after Trump removes tariffs on Brazil
Global coffee prices fell sharply on Friday after U.S. President Donald Trump lifted 40% tariffs on Brazilian agricultural imports, including coffee and cocoa, amid mounting pressure from American consumers over high food costs.
U.S. retail coffee prices had jumped 40% year-on-year in September, partly driven by the tariffs. Rising food inflation has been a major factor contributing to Trump’s declining approval ratings, now at their lowest since his return to office, according to a Reuters/Ipsos poll, News.Az reports, citing Reuters.
The tariff decision, announced overnight, mirrors an order issued last week rolling back duties on coffee and a range of other agricultural products from several producing nations. Brazil, the world’s top coffee grower, supplies roughly one-third of U.S. coffee imports.
Arabica futures on the ICE exchange were down 4.6% at $3.5925 per pound by 1017 GMT, after sinking more than 6% to a two-month low earlier in the session. Robusta futures, commonly used in instant coffee, dropped 5% to $4,400 per metric ton, having earlier fallen as much as 8%.
A Europe-based trader at a major global coffee trading firm said the market needed time to absorb the news, but did not expect prices to fall below $3 per pound. He noted that arabica supplies remain tight, stocks are low, and industry players remain short on supply, while La Niña weather risks continue to threaten crops.
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