Coffee prices fell sharply this Wednesday (12th) as the United States signaled its willingness to cut import duties, potentially easing supply shortages in the world’s biggest coffee consumer.
Arabica coffee fell nearly 5% to US$3.7975 (20.11 reais) per pound at around 1pm (Brasilia time).
U.S. Treasury Secretary Scott Bessent said Wednesday that “substantive announcements” aimed at lowering prices for coffee, bananas and other items not grown in the U.S. will be made to Americans in the coming days.
His comments came after President Donald Trump said on Tuesday that the United States would reduce some tariffs on coffee imports.
For traders, Vietnam, the top Robusta producer, is best placed among major producers to receive Trump’s tariff cuts, but the outlook for Brazil and Colombia remains uncertain.
Vietnam is working towards a trade deal with the United States soon, Deputy Prime Minister Bui Thanh Son said on Wednesday, as new negotiations begin in Washington.
Markets were also awaiting a U.S. Supreme Court ruling on President Trump’s use of emergency powers to impose sweeping international tariffs.
Robusta coffee prices fell by around 5% over the same period to US$4,384 (R23,200) per tonne.
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