Overview

• President Trump announced a 50% tariff on Brazilian coffee imports, effective August 1.
• Arabica futures on the Intercontinental Exchange rose 0.99% to $288.67 per pound following the announcement.
• Brazil, which accounts for about one-third of U.S. green coffee supplies, has vowed proportional countermeasures under a new law.
• A tentative U.S.–Vietnam trade agreement earlier this month imposed a 20% duty on Vietnamese coffee, which supplies about 8% of U.S. imports.
• Industry leaders warn that the elevated duties will translate into higher prices for consumers and are racing to diversify sourcing and improve operational efficiencies.