U.S. tariffs slash Brazilian coffee exports as shipments to Latin America surge 

BRAZIL – Brazil’s coffee exports to the United States fell sharply in August, while shipments to Latin American neighbors surged, according to the Brazilian Coffee Exporters Council (Cecafe). 

Cecafe reported that U.S. imports of Brazilian coffee dropped 46% to 301,099 60-kilogram bags in August, compared to 562,723 bags during the same month last year. The decline follows a 50% tariff imposed by the U.S. on most Brazilian goods, including coffee, at the start of August. 

Despite the drop in total exports to Germany, the European country overtook the U.S. as the largest importer of Brazilian coffee in August, receiving 414,109 bags. At the same time, exports to Mexico rose 90% to 251,166 bags, while shipments to Colombia surged 578% to 112,948 bags, Cecafe data showed. 

Cecafe President Marcio Ferreira said the tariffs disrupted the international coffee market and spurred speculative movements.

He noted there was little chance of re-exporting beans to the U.S. through third countries, as such attempts would be easily detected by American authorities. 

The tariffs have also affected Brazil’s instant coffee industry. Aguinaldo Lima, executive director of ABICS, an association representing instant coffee producers, said exports of instant coffee to the U.S. fell 59.9% in August to 24,460 bags, compared with 65,914 bags in the same month last year. 

Lima warned that the tariffs harm not only Brazilian industries but also U.S. trading partners dependent on Brazilian coffee products. 

Industry groups including the International Coffee Organization and Brazil’s national crop agency Conab have cautioned that the tariffs could lead to higher coffee prices globally. Celirio Inacio, executive director at the Brazilian Coffee Industry Association (ABIC), said the situation is also fueling inflation at home. 

“Coffee is becoming more expensive for consumers again,” Inacio said, adding that rising prices are prompting consumer complaints and will directly contribute to domestic inflation. 

Brazil remains the world’s largest producer and exporter of coffee, while the U.S. is the biggest consumer of the beverage. 

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