Brazil Coffee Exports To The US Plummet And Will Fall Further If Tariffs Don't Lift – CoffeeTalk

Brazil coffee exports to the United States are expected to decline further if U.S. tariffs remain in place, according to Marcio Ferreira, head of exporter group Cecafe. The US imposed a 50% tariff on Brazilian coffee and other goods in early August, amid tensions between Trump’s administration and Brazilian President Luiz Inacio Lula da Silva’s government. As a result, Cecafe reported that the U.S. was no longer Brazil’s biggest market, with coffee sales there falling 46% in August compared to the previous year. Exports to the U.S. were down a further 20% versus their level in August. Ferreira said that if tariffs continue, exports “will keep falling.” He added that only a shift in policy could revive sales.

U.S. tariffs on goods from Brazil, the world’s largest coffee producer and exporter, have upended the global coffee market, pushing prices upwards. In the short to medium term, the tariff restrictions may be good for producers, but exporters, roasters, and consumers are suffering. Some producers are holding onto their stock, betting prices will return towards recent records.

As U.S. purchases shrink, exports to other countries are growing, with total coffee exports to Colombia soared 578% in August. However, the U.S. market is too big for other countries to replace it, and if tariffs remain in place for too long, Americans could grow used to other types of coffee, making it harder for Brazilian companies to recover their position in the U.S. market.

Read More @ US News