Global coffee prices fell sharply on Friday after U.S. President Donald Trump removed 40% tariffs on Brazilian agricultural products, including coffee and cocoa, responding to rising American consumer concerns over high food costs.
U.S. retail coffee prices surged 40% year-on-year in September, partly due to tariffs, contributing to a decline in Trump’s approval ratings.
This latest tariff rollback follows a similar measure announced last Friday affecting coffee and other products from key producing countries.
Brazil, the world’s top coffee grower, supplies about a third of U.S. coffee imports, making the move highly impactful for global markets.
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At 1017 GMT, arabica coffee futures on the ICE exchange, a global benchmark, dropped 4.6% to $3.5925 per lb, having earlier fallen more than 6% to a two-month low. Robusta coffee futures, commonly used for instant coffee, fell 5% to $4,400 per metric ton, after earlier plunging 8%.
A Europe-based trader said the market would need time to digest the move but added that supply constraints persist.
“Arabica is still in deficit, exchange-certified stocks are low, and weather risks from La Niña remain.
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We may see more dips, but I wouldn’t expect prices to fall below $3/lb.”
Despite the tariff removal, underlying supply shortages and weather risks are expected to continue influencing global coffee prices.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.