Global coffee prices plunge after Trump removes tariffs on Brazil

[Starmix]

According to the report, Global coffee prices plunged on Friday after US President Donald Trump removed 40 percent tariffs on imports of many Brazilian agricultural products, including green coffee beans, according to Reuters.

The report also stated that US retail coffee prices rose by an annual 40 percent in September, due in part to tariffs. Rising food prices are a major factor behind Trump's approval ratings falling to their lowest since his return to power, a Reuters/Ipsos poll found.

The report also said that Trump's overnight move follows a similar order announced last Friday to roll back duties on coffee and scores of other products from producing countries.

The report added that the Top coffee grower, Brazil, supplies the United States, the world's largest coffee consumer, with about a third of its beans, and the end of import tariffs should allow for a quick flow of Brazilian beans to depleted US coffee stocks.

In addition to the report, Arabica coffee futures on the ICE exchange closed nearly 2 percent down to USD 3.6945 per pound, having earlier plunged more than 6 percent to two-month lows. Robusta coffee, typically used in instant coffee rather than in roast and ground blends where Arabica dominates, fell 2.7 percent to USD 4,506 a metric ton, having earlier dropped 8 percent.

Source: AZERTAC

 

[kit_hung]

This is going to have a negative ripple effect on some African countries whose farmers are eager to reap big from the high coffee prices.
But such is life. We don't always get what we want.

 

[Stardom22]

l think that would translate to a less significance price reduction for the coffee beans especially in y country.

 

[Starmix]

That issue could only be temporary. People may react especially the businesses and coffee consumers. We don't know what President Trump will announce next to Brazil.