U.S. Removal of Tariffs on Brazilian Coffee Drives Price Drop and Political Debate
The U.S. removal of tariffs on Brazilian coffee led to a sharp drop in global coffee prices and sparked mixed political reactions in Brazil regarding the move’s motivations and implications.
- • Global coffee prices fell sharply after the U.S. lifted a 40% tariff on Brazilian imports.
- • Arabica futures dropped 4.6% and robusta fell 5%, hitting two-month lows.
- • Opposition politicians claim U.S. tariff removal was driven by internal U.S. inflation concerns, not Brazilian diplomacy.
- • Some Brazilian lawmakers view tariff removal as recognition of Brazil’s agricultural competitiveness.
Key details
Global coffee prices experienced a sharp decline following the U.S. decision to remove a 40% tariff on Brazilian agricultural imports, including coffee and cocoa. Brazil, the world's largest coffee producer, supplies about one-third of the coffee consumed in the U.S. After the tariff removal, arabica coffee futures fell 4.6% to $3.59 per pound and robusta coffee prices dropped 5% to $4,400 per ton, marking two-month lows. A trader from a major coffee trading firm noted that despite potential further declines, prices are unlikely to fall below $3 per pound due to low certified stocks, a market deficit, and climate risks like the La Niña phenomenon.
Politically, the tariff removal sparked divided responses among Brazilian politicians. Opposition member Eduardo Bolsonaro dismissed Brazilian diplomacy's influence, attributing the U.S. move to internal factors such as inflation concerns ahead of the 2026 U.S. elections. He linked previous tariff impositions to Brazil's domestic institutional crisis, blaming Minister Alexandre de Moraes for shaking international confidence. Other politicians echoed views that the U.S. action was self-serving rather than a diplomatic win for Brazil. However, some lawmakers like Evair de Melo and Pedro Lupion interpreted the tariff suspension as an acknowledgment of Brazilian agricultural competitiveness and a sign of respect for the sector's global importance.
This development continues the narrative of economic adjustments and political debate surrounding U.S.-Brazil trade relations in the wake of tariff changes.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.