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U.S. 50% Tariff on Brazil Roils Coffee Trade as Prices Jump

Contract reviews by U.S. buyers are shifting orders toward Colombia.

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A worker checks roasted coffee beans at a farm near Brasilia, Brazil July 15, 2025. REUTERS/Adriano Machado/File Photo
SAN FRANCISCO, CALIFORNIA – APRIL 07: Freshly roasted coffee beans are seen in a barrel at Sightglass Coffee on April 07, 2025 in San Francisco, California. The price of coffee is expected to go up as reciprocal tariffs imposed by the Trump administration are set to begin on April 9. The tariffs are being applied to imported goods from over 60 countries. (Photo by Justin Sullivan/Getty Images)

Overview

  • ICE arabica futures have surged roughly 35% in August, trading near $3.80 per pound on Monday.
  • ABIC reports Brazil’s raw-bean prices rose almost 25% from July to 2,191 reais per 60‑kg bag.
  • U.S. importers are rejecting new contracts and reviewing existing deals with Brazilian suppliers following the 50% tariff.
  • Sourcing is being redirected to other origins such as Colombia, which faces a 10% U.S. tariff, though it cannot quickly replace Brazil’s volume.
  • Industry officials cite a recent frost and historically low inventories, plus seasonal buying and speculative activity, as drivers of renewed price volatility and potential consumer price increases.