What's happened
Brazil's premium coffee exports to the US have plummeted nearly 70% after President Trump imposed a 50% tariff on Brazilian goods in August. While Jacu Bird coffee, a high-end product, has avoided tariffs, the broader sector suffers, prompting Brazil to seek new markets amid ongoing trade tensions.
What's behind the headline?
The impact of US tariffs on Brazil's coffee sector will likely accelerate diversification efforts, pushing producers to target markets less affected by trade disputes. Jacu Bird coffee's resilience highlights the potential for niche, high-end products to withstand broader market shocks. However, the decline in specialty coffee exports to the US signals a significant setback for Brazil's premium segment, which relies heavily on American consumers. The situation underscores the vulnerability of global commodity markets to political tensions, and Brazil's need to adapt by exploring alternative markets such as Asia and Europe. The trade dispute also raises questions about the future of Brazil's reputation as a top coffee producer, especially if tariffs persist or escalate. Overall, Brazil's coffee industry faces a challenging period but may emerge more diversified and resilient if it successfully expands into new regions.
What the papers say
The Independent reports that US tariffs have caused a 70% drop in Brazilian specialty coffee exports to the US, highlighting the sector's vulnerability. Oliver Griffin notes that Jacu Bird coffee, a high-end product, has avoided tariffs due to its limited US market presence, but the broader sector suffers. Bloomberg adds that Colombian growers are concerned about re-export risks if Brazilian beans are re-labelled as Colombian, indicating ongoing trade tensions affecting regional coffee markets. The articles collectively emphasize the significant impact of US trade policies on Brazil's coffee exports and the industry's need to adapt to changing global trade dynamics.
How we got here
In August, the US imposed a 50% tariff on Brazilian goods, including coffee, following a dispute with Brazil's president Lula. This move significantly impacted Brazil's premium coffee exports to the US, which is the world's largest coffee market. Despite the tariffs, Jacu Bird coffee, produced from beans eaten and digested by native birds, has not seen sales decline, as it appeals to markets outside the US, such as Japan and Europe. The trade tensions have prompted Brazilian coffee producers to consider expanding into new markets to offset losses in the US.
Go deeper
Common question
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How Are US Tariffs Impacting Brazil's Coffee Exports?
Recent US trade policies have significantly affected Brazil's coffee industry, especially after the imposition of tariffs in 2025. Many coffee producers are now wondering how these tariffs influence exports, prices, and their future markets. Below, we explore the key questions about these trade tensions and what they mean for coffee lovers and producers worldwide.
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How Are US and UK Food Markets Affected by Current Trade Tensions?
Recent trade policies and tariffs are causing significant disruptions in global food and agriculture markets, especially impacting countries like Brazil and regions like the US and UK. These changes raise questions about how trade tensions influence food prices, farmers' livelihoods, and the availability of popular products like coffee. Below, we explore the key issues and what they mean for consumers and producers alike.
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Why Are Brazilian Coffee Exports Dropping?
Brazil, the world's largest coffee producer, is facing a sharp decline in its coffee exports, especially to the US. Recent trade tensions and tariffs have hit the sector hard, prompting questions about the causes and future prospects. In this page, we explore why Brazilian coffee exports are falling, how tariffs impact coffee prices, and what Brazil can do to recover. If you're curious about the global coffee trade and how politics influence your morning brew, keep reading.
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