Brewing trouble: America's coffee addiction meets Trump's trade tariffs
The United States is the largest importer of coffee in the world, and its biggest supplier is Brazil. Earlier this month, US President Donald Trump threatened to impose 50% tariffs on Brazilian goods if President Luiz Inácio Lula da Silva continued a legal inquiry on former Brazilian leader Jair Bolsonaro.
Here's a look at the value of the coffee trade, US coffee-drinking habits and why your cup of coffee could be more expensive very soon, if Trump goes ahead with his latest tariff plan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a minute ago
- Yahoo
Puma inventory headache highlights tariff dilemma for retailers
By Helen Reid LONDON (Reuters) -Puma faces a dilemma in the United States: after rushing shipments from Asia to beat incoming tariffs, the German sportswear brand is now discounting to clear stock, while planning to raise prices this year to offset rising costs. These conflicting pressures reflect a broader challenge for retailers trying to make sure U.S. shelves are stocked for the crucial back-to-school and holiday seasons, while looking to pass on higher costs through price increases at a time when demand is softening. Puma, which warned on Thursday that it expects an annual loss, said it was cutting orders and plans to raise prices in the fourth quarter to soften the impact of tariffs, which it estimates will take 80 million euros ($93.78 million) off its annual gross profit. "Elevated inventory levels on our balance sheet are leading to lower full price realisation," Chief Financial Officer Markus Neubrand told journalists on Friday. "In response, we've adjusted our future orders to better match expected demand." At the end of the second quarter, Puma's inventories were up 18.3% in currency-adjusted terms compared with the previous year, hitting 2.151 billion euros. The increase was mostly driven by North America, Neubrand said. But North America was also Puma's weakest region last quarter, with sales down 9.1% in currency-adjusted terms. Puma now expects global sales to fall this year by at least 10%, further heightening the inventory problem. "The idea to front load imports into the U.S. was a sensible tactical position given uncertainty, but it does come with the risk of increased discounting in a weak market," said Adam Cochrane at Deutsche Bank Research. Puma's plan to reduce orders should help bring inventories down, but also reflects weaker demand from retailers, Cochrane added. Puma gets three-quarters of its revenue from wholesale, and sales through that channel fell 6.3% in the last quarter. Puma aims to bring inventory levels down and rely less on discounting, but Neubrand warned that this could take up to a year. The company does not break out U.S. figures, but the market accounts for around 20% of global sales. "Looking specifically at the U.S., the ability to push through price increases not only appears challenging in the context of higher inventories being up 18% ex-FX, but also given Puma's muted brand momentum in the region amid an increasingly competitive environment," said Felix Dennl, analyst at Metzler in Frankfurt. Even before tariffs, Puma was struggling, with products such as the relaunched Speedcat sneaker not selling as well as expected. CEO Arthur Hoeld, in charge since July 1, warned 2025 would be a "reset" year and 2026 a "transition", as he attempts a turnaround after predecessor Arne Freundt failed to revive sales. Puma's balancing act is one shared by all retailers in the U.S., where memories of record inventory pile-ups in 2022 in the wake of pandemic supply chain disruptions are still fresh. The glut that triggered deep discounting and dented profits is a situation retailers are anxious to avoid repeating. ($1 = 0.8531 euros)
Yahoo
a minute ago
- Yahoo
T-Mobile US Second Quarter 2025 Earnings: EPS Beats Expectations
T-Mobile US (NASDAQ:TMUS) Second Quarter 2025 Results Key Financial Results Revenue: US$21.1b (up 6.9% from 2Q 2024). Net income: US$3.22b (up 10% from 2Q 2024). Profit margin: 15% (in line with 2Q 2024). EPS: US$2.84 (up from US$2.50 in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period T-Mobile US EPS Beats Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.3%. Looking ahead, revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Wireless Telecom industry in the US. Performance of the American Wireless Telecom industry. The company's shares are up 9.0% from a week ago. Risk Analysis What about risks? Every company has them, and we've spotted 1 warning sign for T-Mobile US you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a minute ago
- Yahoo
Volkswagen CEO hopes for own tariff deal with 'attractive' investments
By Rachel More BERLIN (Reuters) -Europe's largest car manufacturer Volkswagen is hoping investment commitments can help it negotiate further concessions on U.S. tariffs once Washington and the European Union strike a broad trade deal, CEO Oliver Blume told investors on Friday. As they wait for the outcome of trade talks between the U.S. and the EU ahead of an August 1 deadline, European carmakers are also looking at possible investments or production shifts that might appease President Donald Trump and bring down tariffs. "We hope that it will come to a well-balanced deal between the U.S. and the EU, which allows fair trade between the regions," Blume told investors after reporting a second quarter impacted heavily by tariffs. Blume said he was expecting a 15% tariff for the EU, similar to one the Trump administration agreed with Japan earlier this week. That would replace a 25% tariff imposed by Trump on car and parts imports in April. An additional deal with Volkswagen would come on top of this, once the tariff row is ended, Blume said. Trump imposed a 25% tariff on car and parts imports in April. "We have a very attractive investment package we will do there," he said, adding that the company has been in "good discussions" with the U.S. government. Pressed by investors for details on possible U.S. investments, Blume spoke only of a "scalable programme," including projects with a clear business case. The executive also mentioned the possibility of opening a plant for Volkswagen's luxury brand Audi in the U.S., where the subsidiary currently has no production presence. While there are expectations that the EU can agree a 15% tariff, avoiding the 30% levy that would come into force on August 1 without a deal, French car parts supplier OpMobility said it was concerning that the EU acting as a bloc seemed unable to negotiate better terms than individual countries. "In the short term, we can probably say that we've avoided the worst, but that does not mean that it's a good deal, at the end of the day it shows that the relationship is unbalanced," CEO Laurent Favre said late on Thursday. Sign in to access your portfolio
