Home Pan Africa Brazil to Feel Heat of Hefty 50% US Tariff on Coffee

Brazil to Feel Heat of Hefty 50% US Tariff on Coffee

11
Brazil to Feel Heat of Hefty 50% US Tariff on Coffee

(3 Minutes Read)

Brazil supplies about 30% of the coffee consumed in the United States, making it the country’s top coffee supplier. The US imported over USD1.6 billion in Brazilian coffee last year, according to trade data.

After President Donald Trump announced a 50% tariff on Brazilian imports to the United States, coffee farmers in Brazil are in despair, particularly the small farmers. Small coffee producers had to quickly adapt to the foreign trade market unpredictability, letting go of the workforce hired for the harvest and holding exports, as there are no guarantees that their product will reach the market.

Trump’s move was explicitly linked to Brazil’s legal proceedings against former president Jair Bolsonaro, a close ally of the US president. The right-winger is currently on trial before Brazil’s Supreme Court over an alleged plot to overturn the 2022 election results.

American consumers may also feel the impact. With global coffee stocks already low, the tariff could push retail prices higher, hitting an industry that relies heavily on Brazilian supply for volume and consistency.

Read Also:

https://trendsnafrica.com/trump-slaps-new-duties-on-smaller-nations/

Brazil supplies about 30% of the coffee consumed in the United States, making it the country’s top coffee supplier. The US imported over USD 1.6 billion in Brazilian coffee last year, according to trade data.