U.S. Imposes 50% Tariff on Brazilian Goods, Coffee Prices Likely to Rise
Starting August 1, the U.S. will impose a 50% tariff on Brazilian goods, prompting Brazilian President Lula to voice his discontent and threaten retaliation at the same rate if negotiations fail, while seeking to develop new markets. U.S. traders are concerned that this could lead to a further rise in coffee prices, as one-third of American coffee imports come from Brazil.
President Lula criticized U.S. President Trump’s actions as disrespectful and urged the business sector to align with the government's position. If a trade war breaks out, coffee is likely to be the first affected commodity. Despite coffee prices having risen 70% last year due to drought, Brazilian coffee producers hope the situation won't escalate further.
U.S. Commerce Secretary Ross mentioned that certain tropical fruits and spices that the U.S. cannot produce domestically may receive tariff exemptions, but prices for other goods like orange juice have already increased.
