Prices of these two drinks could surge if Trump’s Brazil tariffs stick
How Trump’s Brazil tariffs could impact US consumers
- President Donald Trump has announced a plan to increase tariffs on Brazilian imports to 50 per cent, effective from August 1.
- Experts warn the tariff hike could lead to significant price increases for U.S. consumers on essential food items such as coffee, orange juice, and Acai berries.
- Brazil is a dominant global producer of arabica coffee and orange juice, with the U.S. heavily reliant on these imports, particularly for orange juice, due to declining domestic production.
- While Brazil is also the world's top sugar producer, the impact on U.S. sugar prices is expected to be minimal; however, U.S. cattle producers have welcomed the tariff on Brazilian beef.
- Trump cited Brazil's actions concerning free elections, social media platforms, and digital trade activities of U.S. companies as reasons for the proposed tariffs.