- The United States has introduced new tariffs on Brazilian coffee imports, which threatens to increase retail prices.
- The US is one of the largest consumers of Brazilian beans, accounting for 1/3 of global production.
- Higher prices in the US could trigger a global domino effect and weaken demand for coffee.
- Brazilian producers are looking for alternative markets in Europe and Asia and are hoping for a diplomatic solution to the dispute.
Brazil warns of rising coffee prices due to US tariffs
The Brazilian coffee industry is warning that there could be significant price increases in the retail market. The reason is the new tariffs introduced by the US on coffee imports. According to representatives of the Brazilian industry organisation, the additional costs could directly affect consumers’ wallets, especially in countries that are the main buyers of Brazilian beans.
Experts point out that the US is one of the largest markets for Brazil, which accounts for about a third of global coffee production. A rise in retail prices in the US could have a knock-on effect on the global coffee market.
Possible effects on the global coffee market
According to industry forecasts, if the tariffs are maintained, coffee prices in the US could rise by up to a dozen per cent. In Brazil, on the other hand, the concern is that lower demand from the US could result in an oversupply, affecting producers’ incomes.
Growers’ and exporters’ organisations emphasise that in the current situation, it is necessary to look for alternative markets and to intensify trade cooperation with Europe and Asia. The industry is also hoping for a diplomatic solution to the trade dispute in order to limit the negative impact of tariffs on coffee prices and market stability.
