Brazil coffee exporters glimpse opportunity amidst U.S tariffs
SAO PAULO, April 8 (Reuters) - Brazilian coffee exporters see U.S. President Donald Trump's global tariffs as an opportunity to send more robusta beans to the United States after international rivals were hit with even heavier charges.
Trump's tariffs levy a charge of 10% on imports from Brazil, while Vietnam and Indonesia - the world's first and third-largest robusta producers - got hit by 46% and 32% tariffs respectively.
Opportunities could arise for Brazilian exporters if the U.S. coffee industry fails to get the grain - of which the United States does not produce much - put on a tariff exemption list, as well as if Vietnam is unable to reverse its own charge in separate negotiations, the Brazilian Coffee Exporters Council (Cecafe) said on Monday.
"There are opportunities, but the scenario is more one of concern than of gains", Cecafe director general director Marcos Matos said in an interview.
The United States was Brazilian coffee's biggest buyer in 2024, with purchases of 8.13 million 60 kilogram bags, according to Cecafe, accounting for a 16% share of total Brazilian coffee exports.
Vietnam and Indonesia accounted for some 2 million bags of coffee bought by the U.S. market, Matos said, adding that most of their exports were robusta beans.
Each year, Brazil, the world's largest coffee grower, produces more of the milder Arabica beans than the stronger-tasting robusta. However, experts forecast a decrease in Arabica output during the 2025 harvest and a significant increase in robusta production.
Coffee tends to fare better than other goods during turbulent times, Matos said - citing the COVID-19 pandemic - and added that Brazil is at least facing the lowest possible tariff and is in a position to maintain its share of sales to the U.S..
"Coffee tends to be resilient in economic crises..., but obviously it has limits, it can grow less," Matos said.
The best outcome would see coffee included on a tariff exemption list, Matos said, citing studies showing that every dollar of coffee imports generates $43 for the U.S. economy.
"We are trying to go the way (of an exception list), showing the benefit coffee has for the economy," Matos said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
30 minutes ago
- Reuters
US wholesale inventories in April revised higher
WASHINGTON, June 9 (Reuters) - U.S. wholesale inventories increased in April amid stockpiling of prescription medication in anticipation of tariffs from the Trump administration. Stocks at wholesalers rose 0.2% instead of being unchanged, as estimated last month, the Commerce Department's Census Bureau said on Monday. Economists polled by Reuters had expected last month's estimate would be unrevised. Inventories, a key part of gross domestic product, climbed 0.3% in March. They advanced 2.3% on a year-over-year basis in April. Wholesale stocks of prescription medication surged 1.3% in April. There were also increases in apparel, motor vehicle, groceries and professional equipment inventories. President Donald Trump has said he would impose tariffs on imports of pharmaceutical products that have long been spared from past trade disputes due to the potential for harm to patients. Apart from drugmakers, businesses front-loaded imports in the first quarter, seeking to avoid Trump's sweeping duties on foreign goods, resulting in a large trade deficit that subtracted a record 4.90 percentage points from GDP. The front-running faded in April, leading to a record decline in imports and the overall trade deficit. While the contraction in the deficit at face value suggests trade could significantly add to gross domestic product in the second quarter, economists say some of the boost could be offset by low inventories. Inventory accumulation increased at a rate of $163.0 billion in the first quarter. The economy contracted at a 0.2% annualized rate in the January-March period, the first GDP decline in three years. It grew at a 2.4% pace in the fourth quarter. Sales at wholesalers edged up 0.1% in April after jumping 0.8% in March. At April's sales pace it would take wholesalers 1.30 months to clear shelves, unchanged from March.
Daily Mail
an hour ago
- Daily Mail
Elon Musk's latest stunt to win back Trump as he doubles down on using the military to stop ICE riots in LA
Donald Trump has said his relationship with Elon Musk has ended amid their shocking feud, but that hasn't kept the world's richest man from firing off posts that just might claw him closer to the president's good graces. The chaos in Los Angeles provided one opportunity for the former first buddy to align himself with the president who made him a a fixture at Mar-a-Lago before the eruption of their extraordinary public feud. And amid online feuding with key Trump figure Stephen Miller, Musk on Sunday re-followed the president's deputy chief of staff on X, four days after unfollowing him. Trump on Saturday told NBC his relationship with Musk was over. 'I would assume so, yeah,' said Trump, who also warned of 'consequences' for Musk if he donated to Democrats amid their clashes over debt and trade. Vice President JD Vance, who has known Musk for years and could serve as a potential bridge between the two men, urged Musk to settle down. 'But I think it's been very restrained because the president doesn't think that he needs to be in a blood feud with Elon Musk. I actually think if Elon chilled out a little bit, everything would be fine,' Vance told comedian Theo Von on his podcast. Vance also ripped the idea, reposted by Musk amid the fury, that Trump should be impeached. 'I just think the idea that the president should be impeached, I'm sorry, it's insane. It's totally insane, Vance said, calling Musk's media meltdown 'not helpful.' Musk appeared to take down one incendiary post linking Trump to the late convicted sex trafficker Jeffrey Epstein. 'Time to drop the really big bomb: @realDonaldTrump is in the Epstein files,' Musk wrote in the original post. He also went online to debunk a viral screenshot that he 'took' Miller's wife, Katie Miller, who is working for Musk following the end of her status as a Special Government Employee assisting Musk and the Department of Government Efficiency. The screen shot was of a Mille post saying 'We will take back America,' with a purported response by Musk saying 'Just like I took your wife.' The problem is that when online users took to Musk's own AI tool Grok inquiring whether the screenshot was real, it answered that it 'likely existed and was deleted.' Musk responded to Grok Sunday night: 'No, it's fake ffs,' adding a face palm emoji. 'I never posted this.' Musk wasn't only tamping down feuds. He was also applauding Trump's own efforts to flex his strength amid escalating protests in Los Angeles that began over ICE raids and led to weekend clashes between police and protesters. Trump deployed at least 300 California National Guard troops despite the opposition of Gov. Gavin Newsom, the first time a president had undertaken such a move in decades. The president kept up the call Sunday to 'bring in the troops,' even as Newsom said the deployment would further inflame the situation. Musk posted images of Newsom superimposed over burning vehicles, and reposted comments by Trump trashing Newsom and L.A. Mayor Karen Bass. He also posted an image of a masked man waving a Mexican flag over a burning Waymo vehicle. 'This is not ok,' he wrote. He also reposted JD Vance applauding Trump's actions, adding two American flags in his own posting. Musk has also flooded his account with postings about SpaceX and his other corporate ventures, days after launching an online storm against Trump's 'big, beautiful bill' with warnings about exploding the nation's accumulated debt and deficits.
Daily Record
an hour ago
- Daily Record
Nando's confirms first Ayrshire restaurant set to open 'later this year'
Nando's will be coming to Ayrshire later this year after the firm confirmed they would be opening a new outlet in Kilmarnock. A popular chicken restaurant chain is set to open its first outlet in Ayrshire 'later this year'. Nando's have confirmed that they are set to bring their famous flame-grilled peri-peri chicken to Kilmarnock. Previously, Ayrshire's foodies and fans of the South African chain have had to travel to Glasgow to for their peri-peri fix with the Silverburn outlet the closest to the county. Nando's have not confirmed exactly where their new Kilmarnock eatery will be but it is believed that they are interested in the former Tony Macaroni restaurant next to the Odeon cinema on Queen's Drive. The building, which was previously a Frankie and Benny's, has been empty since July 2024 when Tony Macaroni unexpectedly closed the restaurant. Frankie and Benny's had pulled out of the venue in 2020 as a result of the impact of the Covid-19 pandemic on the hospitality industry. In response to an enquiry from Ayrshire Live, Nando's said they were "excited" to be opening in Kilmarnock and that they would "share more details soon". Founded by Fernando Duarte and Robert Brozin in Rosettenville, South Africa, Nando's is a Portuguese and Mozambican inspired restaurant chain which primarily serves peri-peri chicken. Named after Fernando's son Nando, the restaurant chain currently operates more then 1,000 restaurants in 30 countries worldwide.
