Brazil’s Coffee Future: Tariffs and Trade Troubles Brew

In a significant trade development, Brazilian coffee growers in Vassouras are on the brink of major disruption. A new U.S. tariff policy announced by President Donald Trump, slated to take effect on August 1, will raise duties on Brazilian coffee from 10% to 50%. This change poses a serious concern for Brazil, the world's largest coffee exporter.

Thiago Garcia, a coffee farmer from Brazil's Rio de Janeiro state, emphasized the impact such tariffs could have on global trade. "Brazil is the largest producer and exporter (of coffee) in the world," Garcia noted, underlining that the United States sources roughly one-third of its coffee from Brazil.

With the impending tariffs, the Brazilian market faces an oversupply as exports to the U.S. could decline, potentially driving down coffee prices domestically. Industry groups are urgently seeking alternative export destinations to mitigate the surplus and offset losses.

(With inputs from agencies.)