Brazilian coffee exporters say the United States will keep buying large amounts of Brazilian coffee, even after a sharp tariff hike.
Starting August 1, the US plans to raise tariffs on Brazilian coffee imports from 10% to 50%.This new tax arrives as the US leans on Brazilian beans for about a third of all the coffee Americans drink, official data from Cecaf and Brazils Agriculture Ministry shows.
Last year, the US imported over 8 million 60-kilo bags of Brazilian coffee, worth nearly $2 billion.With the new tariffs nearing, exporters are working fast to ship as much coffee as they can before the extra cost hits.
Few are signing new contracts until things settle, but ongoing shipments have not stopped.US coffee companies have no quick way to replace Brazilian beans.
Colombia and Vietnam also supply the US, but their volumes or taste profiles cannot fully match Brazils.Official US Department of Agriculture numbers confirm how dependent the US remains on importsdomestic coffee farms provide less than 1% of national demand.Tariff Trouble, But Brazilian Coffee Keeps Flowing to U.S..
(Photo Internet reproduction)Coffee prices in the US have already jumped as much as 32% since the tariff news broke, according to commodity market data.
Although importers will pay the new tariff at first, higher costs will likely reach US consumers at the checkout.Brazils Coffee Exporters Council admits that selling to new markets like China is possible, but not fast or easy.
No other country drinks as much coffee as the US, so redirecting exports overnight is impossible.Business leaders and trade officials on both sides agree on one thing: even with higher tariffs, the US cannot give up Brazilian coffee, and Brazil cannot afford to lose the US as its top customer.Tariffs will raise prices and create headaches, but the flow of Brazilian coffee to US cups is set to continue, grounded firmly in trade data from Cecaf, the International Coffee Organization, and US and Brazilian export agencies.
This is a classic case of supply meeting demand, despite political hurdles.