President Trump’s Brazil tariffs could cause U.S. coffee prices to soar
U.S. President Donald Trump’s proposed 50% tariffs on imports from Brazil could significantly increase U.S. coffee prices, hurting both roasters and consumers.
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WASHINGTON — The Trump administration announced trade deals with several countries that could lower the prices of bananas, coffee and chocolate for Americans.
The framework agreement announced by the White House on November 13 commits the United States to eliminating President Donald Trump’s reciprocal tariffs on certain exports that cannot be grown, mined or produced in sufficient quantities in the United States. The government says tariff rates in both countries remain the same — 10% for Guatemala and El Salvador and 15% for Ecuador.
Trump administration officials said this includes bananas and cocoa from Ecuador, as well as coffee, textiles and clothing from Guatemala.
The United States announced on November 13 that it had reached an agreement with Argentina to open markets to American cattle and poultry and prohibit discriminatory practices against American digital services and products. U.S. officials indicated earlier this week that they were looking at ways to lower the prices of coffee, bananas and other fruits.
President Trump said in an interview with Laura Ingraham on Fox News on November 10, “I’m going to lower some of the coffee tariffs.” “I’ll get you some coffee.”
According to the Consumer Price Index, coffee prices rose 19% from last year as of September. The price of bananas will increase by 7%. Cocoa is the main ingredient in chocolate and many popular candies, but it also drives up costs for Americans, industry and trade officials say.
President Trump and his aides blame the Biden administration’s spending for the high prices. They deny that his tariffs are taxes on consumers that drive up the prices of some imported goods.
For example, coffee prices were rising even before President Trump’s tariffs were imposed due to the weather, said a senior administration official who spoke to reporters on condition of anonymity. Brazil, the world’s largest coffee producing country, is suffering from a devastating drought. The costs associated with tariffs are passed on to consumers. The government hopes retailers won’t have to do that in the future, the official added.
According to the National Coffee Association, the United States imports 99% of its coffee. Much of that comes from Brazil, where President Trump imposed steep 50% tariffs in the summer, citing Brazil’s criminal case against former President Jair Bolsonaro. Colombia, a large exporter of coffee, is subject to a 10% tariff.
Overall U.S. inflation was slightly lower in September than in August, but the consumer price index was up 3% from the same point in 2024. The cost of living and the economy continue to top the list of issues Americans are most concerned about.
