Global arabica coffee prices have surged more than 30% this month after the United States imposed a 50% tariff on Brazilian beans on Aug. 6, according to Brazil’s coffee exporters council. Futures traded in New York reached about $3.74 a pound on Aug. 22, approaching the record set earlier this year and marking an eighth consecutive daily gain. Exporters say the duty has made shipments to the U.S. uneconomic, pushing roasters to seek supplies from Central America and Colombia at higher premiums and stoking speculative buying on the ICE exchange. The spike is rippling through U.S. supply chains. A Labor Department inflation update shows retail coffee prices up 14.5% in July from a year earlier, while independent roasters report raising drink prices by as much as $1 to offset rising bean costs. Some U.S. buyers are pausing purchases from Brazil while lobbying Washington for tariff exemptions. Coffee is the latest example of broader cost pressures linked to President Donald Trump’s trade policy. Wholesale prices measured by the Producer Price Index jumped 0.9% in July—the sharpest monthly rise in three years—as import-dependent categories from electronics to food recorded notable increases. Democratic lawmakers cite a Yale Budget Lab estimate that tariffs will add roughly $2,400 to the average household’s annual expenses in 2025. Consumers are feeling the strain beyond the breakfast table. Retail data show back-to-school supplies costing 7.3% more than last year, while grocery, utility and health-care bills continue to climb. Lawmakers also warn that the administration’s recently enacted Big Ugly Law could remove Supplemental Nutrition Assistance Program benefits from about 130,000 Nevadans, cutting support just as food prices accelerate. Economists say the tariff-driven inflation complicates the Federal Reserve’s plans ahead of its Sept. 17 policy meeting and could slow any move toward interest-rate cuts. With inventories of pre-tariff imports dwindling, analysts expect businesses to pass more costs to shoppers in the coming quarters, keeping upward pressure on consumer prices.
COFFEE TRADES HIGHER FOR 8TH STRAIGHT DAY — LONGEST WINNING STREAK SINCE FEBRUARY
US tariffs behind surge in global arabica prices, Brazil exporters group says https://t.co/EusDnZ7o5a https://t.co/EusDnZ7o5a
La arábica marca récords, el clima no ayuda y los aranceles del 50% impuestos por Trump generan un combo de factores para Brasil que no favorecen al mercado del café. ¿Es un buen momento para que el sector cafetero de Colombia tome ventaja? Daiane y Camilo charlan al respecto. https://t.co/ev4TaLRHBh