Finance
Global coffee prices plunge after Trump removes tariffs on Brazil
Published by Global Banking and Finance Review
Posted on November 21, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 21, 2025
2 min readLast updated: January 20, 2026
Coffee prices fell as Trump removed tariffs on Brazilian imports, impacting US market dynamics and futures prices.
LONDON (Reuters) -Global coffee prices plunged on Friday after U.S. President Donald Trump removed 40% tariffs on imports of Brazilian agricultural products including coffee and cocoa in the face of growing angst from American consumers about high food costs.
U.S. retail coffee prices rose an annual 40% in September, due in part to tariffs, and rising food prices are a major factor behind Trump's approval ratings falling to their lowest since his return to power, a Reuters/Ipsos poll found.
Trump's overnight tariff removal on Brazil follows a similar order announced last Friday to roll back duties on coffee and scores of other agricultural products from producing countries.
Top coffee grower Brazil supplies the U.S., the world's largest coffee consumer, with about a third of its beans.
At 1017 GMT, arabica coffee futures on the ICE exchange, used as a benchmark to price physical coffee around the world, were down 4.6% to $3.5925 per lb, having earlier plunged more than 6% to two-month lows.
Futures prices for robusta coffee beans, typically used in instant coffee rather than in the roast and ground blends where arabica dominates, were down 5% to $4,400 a metric ton, having earlier sunk 8%.
"(We) need the market to digest this. More downside? Maybe, but I do not believe we'll go below $3/lb. If anything I would be a buyer into whatever market dip comes from this news," said a Europe-based trader at a top global coffee trade house.
He explained that the arabica crop was still in deficit, exchange certified and industry stocks were low, the industry was short on supply and needed to buy, and there were still weather risks due to the La Nina phenomenon.
(Reporting by May Angel; Editing by David Goodman and Alex Richardson)
Coffee futures are contracts to buy or sell coffee at a predetermined price at a specified time in the future. They are used by traders to hedge against price fluctuations.
Arabica coffee is a species of coffee that is known for its smooth, mild flavor and is considered to be of higher quality compared to robusta coffee, which is more bitter.
Robusta coffee is a type of coffee that is stronger and more bitter than arabica. It has a higher caffeine content and is often used in instant coffee and espresso blends.
La Nina is a climate pattern characterized by cooler ocean temperatures in the central and eastern Pacific Ocean, which can affect weather patterns globally, including agricultural production.
Explore more articles in the Finance category
