US Buyers Delaying Imports Of Brazilian Coffee Following 50% Tariffs – CoffeeTalk

US coffee buyers are requesting to postpone imports of Brazilian coffee following a 50% tariff imposed by US President Donald Trump on Brazilian goods, according to local exporters’ group Cecafe. The US coffee industry, a major buyer of Brazilian coffee, is now in a holding pattern as it awaits news on tariff negotiations, according to Cecafe President Marcio Ferreira. The delay in shipping would also hit exporters using advances on exchange contracts (ACCs), a type of instrument used for pre-shipment financing. Postponements in shipping would also hit exporters using the current inverted futures market, where more distant contracts depreciate versus closer ones.

While the tariff took effect this month, Brazilian green coffee exports to all destinations fell 28.1% in July compared to the same month a year ago, to 2.45 million 60-kilogram bags. Brazil, the world’s top coffee producer and exporter, shipped 1.98 million bags of arabica beans abroad last month, a 20.6% decline year-on-year, while exports of the robusta variety dropped nearly 49% to about 461,000 bags.

While the US is the biggest consumer, other top customers include Germany, Italy, and Belgium, according to Cecafe. The US is the biggest consumer, while other top customers include Germany, Italy, and Belgium.

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