Trump Brazil tariffs could raise coffee prices
The post Trump Brazil tariffs could raise coffee prices appeared on BitcoinEthereumNews.com. President Donald Trump’s proposed 50% tariff on Brazilian imports is bad news for coffee drinkers. Brazil, the largest U.S. supplier of green coffee beans, accounts for about a third of the country’s total supply, according to data from the U.S. Department of Agriculture. Coffee beans need to grow in a warm, tropical climate, making Hawaii and Puerto Rico the only suitable places in the United States to farm the crop. But, as the world’s top consumer of coffee, the U.S. requires a massive supply to stay caffeinated. Mintel estimates that the U.S. coffee market reached $19.75 billion last year. The increase in trade duties could leave consumers with even higher costs after several years of soaring coffee prices. Inflation-weary consumers have seen prices for lattes and cold brew climb as droughts and frost hit the global coffee supply, particularly in Brazil. Earlier this year, coffee bean futures hit all-time highs. They rose 1% on Thursday, although still well below the record set in February. To be sure, there’s still time for Brazil to strike a deal with the White House before the tariffs go into effect on Aug. 1. Plus, food and beverage makers are hoping that the Trump administration will grant exemptions for key commodities. U.S. Department of Agriculture Secretary Brooke Rollins said in an interview in late June that the White House is considering exemptions for produce that can’t be grown in the U.S. — including coffee. But if that doesn’t happen, coffee companies like Folgers owner J.M. Smucker, Keurig Dr Pepper, Starbucks and Dutch Bros will face much higher costs for the commodity. Giuseppe Lavazza, chair of Italian roaster Lavazza, said on Bloomberg TV on Thursday morning that the latest tariff could mean “a lot of inflation” for the coffee industry. Roasters will try to mitigate the…
The post Trump Brazil tariffs could raise coffee prices appeared on BitcoinEthereumNews.com.
President Donald Trump’s proposed 50% tariff on Brazilian imports is bad news for coffee drinkers. Brazil, the largest U.S. supplier of green coffee beans, accounts for about a third of the country’s total supply, according to data from the U.S. Department of Agriculture. Coffee beans need to grow in a warm, tropical climate, making Hawaii and Puerto Rico the only suitable places in the United States to farm the crop. But, as the world’s top consumer of coffee, the U.S. requires a massive supply to stay caffeinated. Mintel estimates that the U.S. coffee market reached $19.75 billion last year. The increase in trade duties could leave consumers with even higher costs after several years of soaring coffee prices. Inflation-weary consumers have seen prices for lattes and cold brew climb as droughts and frost hit the global coffee supply, particularly in Brazil. Earlier this year, coffee bean futures hit all-time highs. They rose 1% on Thursday, although still well below the record set in February. To be sure, there’s still time for Brazil to strike a deal with the White House before the tariffs go into effect on Aug. 1. Plus, food and beverage makers are hoping that the Trump administration will grant exemptions for key commodities. U.S. Department of Agriculture Secretary Brooke Rollins said in an interview in late June that the White House is considering exemptions for produce that can’t be grown in the U.S. — including coffee. But if that doesn’t happen, coffee companies like Folgers owner J.M. Smucker, Keurig Dr Pepper, Starbucks and Dutch Bros will face much higher costs for the commodity. Giuseppe Lavazza, chair of Italian roaster Lavazza, said on Bloomberg TV on Thursday morning that the latest tariff could mean “a lot of inflation” for the coffee industry. Roasters will try to mitigate the…
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