Brazil’s tariffs impacting coffee

The US government has recently introduced a 50% tariff on imports from Brazil. This will significantly impact the coffee industry.

Coffee is grown in over 40 countries around the world. But, it is not as prolifically produced anywhere else as it is in Brazil. The country is accounting for nearly 40% of the world’s coffee supply.

We at Tico Coffee Roasters also import coffee from Brazil. The tariffs on Brazilian imports have caused a great share of uncertainty in terms of obtaining coffee. Also, tariffs on other countries pose extra challenges. Prices for essential items like cups and bags have increased. Consumers are forced to shoulder that cost.

Because of this, we have been looking at other countries like Colombia, Rwanda, India and Indonesia as possible alternatives. It will be difficult to replace the dependency on Brazil. They are the largest coffee producer in the world. The smaller countries have limited capabilities to grow. And every coffee company will try a similar strategy.

The Silicon Valley Business Journal recently picked up on this challenge and shared some of their views as well.

Ultimately, it means that companies will have to eventually consider raising prices to continue operations. As a result, the everyday consumer might no longer be capable of affording basic staples like coffee.