UPDATE 1-Tariffs, climate change, smaller Brazil crop drive coffee prices up, ICO says

Tariffs imposed by the United States, climate change, and a smaller crop in Brazil are driving coffee prices higher, the executive director of the International Coffee Organization (ICO) told Reuters on Tuesday. Despite the upward trend, prices remain volatile and uncertain, as consumption rises and inventories decline, Vanusia Nogueira said on the sidelines of an event at the National Federation of Colombia Coffee Growers.

Nogueira noted that global coffee supply is facing shortages after several years of production deficits caused by adverse weather in key growing regions. Brazil, the world's largest coffee producer, is grappling with weather-related setbacks, including frost, that have reduced harvest sizes and lowered bean weights.

"We don't know when Brazil's harvest will return to normal; we are experiencing very strong weather events every year," Nogueira added. On top of that, tariffs ranging from 10% to 50% imposed by U.S. President Donald Trump on imports from coffee producing countries have caused uncertainty in the market, according to experts.

Still, Nogueira noted that demand continues to grow despite rising prices. "Consumers are going to pay. Consumers want coffee," she added.

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