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In The Short Term, The 50% U.S. Tariff Increased Coffee Prices and Benefited Producer Costs; In The Medium Term, Logistics Change, But The U.S. Cannot Replace Brazil

Published on 29/08/2025 at 22:39
Mesmo com tarifas altas, o café brasileiro segue indispensável para os EUA.
Mesmo com tarifas altas, o café brasileiro segue indispensável para os EUA.
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50% Tariff From The USA Raises Coffee By 35%; Brazil Supplied 1/3 Of Americans And Redirects Cargoes, Targeting European Union, Which Already Accounts For 50%.

In early August, Arabica coffee futures surged nearly 35%, the biggest monthly jump since 2014. The reason was straightforward: the imposition of a 50% tariff on coffee imported from Brazil, a measure that disrupted the market and brought uncertainties to the production chain. The Times Brasil highlights that in the short term, the USA’s 50% tariff has raised coffee prices and benefited producer prices; in the medium term, logistics change, but the USA cannot replace Brazil’s requirement for coffee.

According to consultant José Carlos Hausknest from MB Agro, this happens because Brazil accounts for almost one-third of the coffee consumed by Americans, a portion that other suppliers, such as Colombia and Vietnam, cannot fully supply.

The Immediate Impact Of The 50% Tariff

The expectation was that coffee would be included in the list of exceptions, as occurred with orange juice, which would reduce the tariff to 10%. However, negotiations stalled, and so far the product remains fully taxed. The effect was immediate: future prices soared, and American blends, which depend on fixed percentages of Brazilian coffee, were under pressure.

Changing recipes and flavor profiles is not simple, as the industry needs to maintain the quality and consistency demanded by consumers. This places pressure not only on US importers but also on coffee shops and major brands operating in the global market.

How Brazil Redirects Its Exports

From the Brazilian side, the reaction was to redirect shipments to other destinations. The USA absorbs about 16% of Brazilian coffee exports, while the European Union already represents almost 50% of the external market. This bloc presents itself as the main space to relocate part of the volume affected by the tariff.

Furthermore, by purchasing more from Colombia and other countries, Americans end up displacing suppliers that traditionally supplied other regions. This movement opens windows for Brazil to increase its presence in secondary markets, even with the tariff pressure.

In The Short And Medium Term

In the short term, higher prices benefit Brazilian producers, who find better margins due to the heated global demand. However, in the medium term, there is commercial risk: losing share with a client as significant as the United States is never good.

On the other hand, experts remind us that the USA cannot replace Brazil in the coffee market. The trend is that, even while paying high tariffs, the country will continue to buy from Brazil, or at some point, coffee will enter a package of exceptions.

The tariff crisis has shown that when it comes to coffee, the USA cannot replace Brazil. The strength of domestic production, both in volume and quality, keeps the country as a central player in the global market.

And you, do you think this 50% tariff could lead the USA to retreat or do you believe that Brazil should bet on market diversification to reduce American dependency? Leave your opinion in the comments; we want to hear from those who live this in practice.

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Carlos Eduardo Santos
Carlos Eduardo Santos
04/09/2025 09:40

O café no Brasil está caro pra c@c3te.
A pandemia e esses gastos públicos desenfreados contribuíram pra isso.

Média de preço (R$/500g):
2020 R$ 8,39
2021 R$ 11,00
2022 R$ 17,50
2023 R$ 24,00
2024 R$ 28,04
2025 R$ 32,00
*Dados da ABIC.

Eu pensei, “com essas quedas de importação, vão abastecer o mercado interno e os preços vão baixar”…
Nunca estive tão enganado!!!

Correia de Barros
Correia de Barros
03/09/2025 06:37

O presidente está certo ao procurar outros parceiros comerciais

Jorge
Jorge
02/09/2025 18:09

Vendemos pea outro e boa.

Maria Heloisa Barbosa Borges

Falo sobre construção, mineração, minas brasileiras, petróleo e grandes projetos ferroviários e de engenharia civil. Diariamente escrevo sobre curiosidades do mercado brasileiro.

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