Global Coffee Prices Fall After Trump Cancels Tariffs on Brazil

Economy SadaNews - Global coffee prices have fallen after U.S. President Donald Trump canceled a 40% tariff on imports of Brazilian agricultural products, including coffee and cocoa, in response to increasing concern among American consumers about rising food costs.

A Reuters/Ipsos poll showed that retail coffee prices in the United States rose by 40% year-on-year in September, partly due to the tariffs.

Trump's cancellation of the tariffs he imposed on Brazil follows a similar order announced last Friday to eliminate tariffs on coffee and dozens of other agricultural products from producing countries, according to "Reuters".

Brazil, one of the largest coffee producers in the world, supplies the United States, the world’s largest coffee consumer, with about one-third of its coffee demand.

Arabica coffee futures contracts on the Intercontinental Exchange fell by 4.6% to $3.5925 per pound, after previously declining by more than 6% to their lowest level in two months.

Futures prices for robusta coffee beans, which are commonly used in instant coffee instead of roasted and ground blends where Arabica coffee dominates, fell by 5% to $4,400 per ton, after previously dropping 8%.