Overview

• President Trump has announced an increase in tariffs on Brazilian imports from 10% to 50% under his “Liberation Day” measures, targeting coffee to penalize Brazil over the Bolsonaro trial and social media policies.
• Commodities traders are diverting vessels mid-journey and U.S. importers are prelisting wholesale prices that factor in the higher levy to clear cargo before August 1.
• Brazilian co-op Expocacer has confirmed it cannot renegotiate contracts for deliveries after the deadline, prompting buyers to look to alternative markets and suppliers.
• Legal experts from the Cato Institute and others say the tariff likely exceeds presidential authority and violates U.S. commitments under World Trade Organization treaties.
• The U.S. National Coffee Association has formally petitioned the administration for a coffee exemption to prevent further price hikes for American consumers.