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See What Could Happen to Coffee Prices in Brazil After Trump’s Tariffs

Published on 12/07/2025 at 22:38
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The Decision of the United States to Impose a 50% Tariff on Brazilian Products May Generate Unexpected Impacts on the Domestic Market. One of the Sectors That May Feel the Effects Is Traditional Coffee on Brazil’s Export Agenda.

The new 50% tariff on Brazilian products announced by the United States may alter the price landscape for coffee and beef in Brazil.

According to the Ministry of Finance, this change may increase the supply of these products in the domestic market, putting downward pressure on prices.

Exports Are Expected to Fall

The Secretary of Economic Policy of the Ministry of Finance, Guilherme Mello, stated that the tariff has the potential to significantly reduce Brazilian exports to the U.S. “This 50% tariff is practically prohibitive for a set of products that we export,” he said.

Among the most affected are beef and coffee.

More Products in the Domestic Market

The government’s assessment is that, with the decrease in exports, part of the production aimed at the external market will be directed to domestic consumption.

This may generate greater supply and consequently lower prices for Brazilian consumers.

Guilherme Mello also pointed out that domestic producers may seek other destinations for their products, especially basic goods such as oil, iron, steel, pulp, meat, and orange juice.

According to him, these items have greater ease of reallocation compared to manufactured goods, such as aircraft and industrial machines.

Caution with Inflation Forecasts in Brazil in 2025

Despite the projections, the secretary emphasized that it is still early to estimate the inflationary effects of the measure. He stated that analyzing the total impact is “very premature.”

If maintained, the tariff could force Brazil to redirect exports and put pressure on the domestic market with greater supply, directly affecting the prices of beef and the price of coffee.

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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