| July 12, 2025, Saturday //
The impending 50% tariff imposed by the United States on Brazilian imports is already pushing up the price of coffee, particularly the Arabica variety, which is known for its premium quality. Following the announcement, Arabica futures surged by more than 3.5% in a single day during trading in New York.
The tariff, set to take effect on August 1, 2025, was detailed in a letter from US President Donald Trump to Brazilian President Luiz Inacio Lula da Silva, shared on the social platform The Truth Social. The letter cites concerns over Brazil's alleged "dangerous attacks" on free elections and Americans’ fundamental rights to free speech as a justification for the new duties.
Giuseppe Lavazza, CEO of the Lavazza Grocer, commented on the broader implications, explaining that tariffs on European goods won’t significantly affect the coffee market in the US. Instead, the issue lies with tariffs targeting major coffee exporters such as Brazil and Vietnam. Lavazza warned that these trade barriers are likely to result in increased coffee prices for American consumers.
In sum, while tariffs between the US and Europe pose less of a challenge, the heightened duties on coffee-exporting nations threaten to drive up the cost of coffee in the US market.
The impending 50% tariff imposed by the United States on Brazilian imports is already pushing up the price of coffee, particularly the Arabica variety, which is known for its premium quality. Following the announcement, Arabica futures surged by more than 3.5% in a single day during trading in New York.
The tariff, set to take effect on August 1, 2025, was detailed in a letter from US President Donald Trump to Brazilian President Luiz Inacio Lula da Silva, shared on the social platform The Truth Social. The letter cites concerns over Brazil's alleged "dangerous attacks" on free elections and Americans’ fundamental rights to free speech as a justification for the new duties.
Giuseppe Lavazza, CEO of the Lavazza Grocer, commented on the broader implications, explaining that tariffs on European goods won’t significantly affect the coffee market in the US. Instead, the issue lies with tariffs targeting major coffee exporters such as Brazil and Vietnam. Lavazza warned that these trade barriers are likely to result in increased coffee prices for American consumers.
In sum, while tariffs between the US and Europe pose less of a challenge, the heightened duties on coffee-exporting nations threaten to drive up the cost of coffee in the US market.
No comments:
Post a Comment