Brazil coffee exporters glimpse opportunity amidst U.S tariffs
By Roberto Samora
SAO PAULO (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.
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