BUSINESS

Coffee Costs Could Go Up Thanks to New Tariffs

USAThu Jul 10 2025
Coffee lovers in the US might soon pay more for their favorite brew. Why? Because of a big change in trade rules. The US president recently said they will add a huge tax, or tariff, on coffee from Brazil. This news made coffee prices jump right away. Brazil is the biggest coffee maker in the world. So, when the US said they would add a 50% tax on Brazilian coffee, it caused a stir. This tax is supposed to start in August. The US leader said this is because they think Brazil is not being fair to free speech. Right after this news, the price of arabica coffee, the fancy kind, went up by more than 3. 5%. Later, it settled a bit but still ended up higher. Experts say this could make coffee more expensive for people in the US. A big coffee company boss said the current 10% tax on European goods is okay. But taxes on coffee from places like Brazil and Vietnam could be a problem. He thinks this will make coffee cost more for US buyers. Coffee prices have been going up and down lately. Bad weather in big coffee-growing countries like Brazil and Vietnam made prices go up. But recently, prices dropped a bit because people thought the next harvest would be better. Some experts hope the US will not tax coffee. They say the US gets a lot of its coffee from Brazil. If they don't make an exception, coffee could get much more expensive. Also, other coffee-growing countries like Vietnam and Indonesia might be affected too. So, if you love your morning coffee, keep an eye on the news. You might have to pay more for it soon.

questions

    What are the potential economic and social impacts on US consumers if the tariffs are implemented, and how might they adapt?
    What role do speculators play in the current coffee market, and how might their activities influence price volatility?
    How might the coffee industry strategically respond to the tariffs, and what alternative sourcing or production methods could they explore?

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