Hello lovelies,
The price of eggs has allegedly been lowered 🍊. However, it is currently causing a huge price increase for coffee and juice.
Which companies could be affected by this?
$SBUX (-0,27%)
$MCD (+0,51%)
$MDLZ (-0,31%)
$HSY (-0,13%) etc.
If 50 percent tariffs are imposed on imports from Brazil from August, US consumers could face massive price increases for coffee and orange juice. Experts warn that supply chains could come to a standstill.
US consumers face the threat of drastic price increases for coffee and orange juice if President Donald Trump imposes tariffs of 50 percent on imports from Brazil as threatened. Experts and traders have warned that the import duty planned from August 1 would bring the supply of Brazilian coffee to the USA to a standstill. Neither US roasters nor Brazilian exporters would be able to bridge the price difference resulting from the duty.
America's favorite drink
No other country drinks as much coffee as the USA. Around a third of this popular beverage comes to the USA from Brazil. According to its exporters' association Cecafe, the South Americans delivered 8.14 million 60-kilogram bags to the USA in 2024. Other foods are also likely to become more expensive. For example, more than half of the orange juice sold in the USA comes from Brazil. Other export products include sugar, wood products and oil.
Paulo Armelin, a large coffee producer who sells directly to US roasters, explained that his customers would probably not be able to pay him if the threatened tariff is implemented. Even without the levy, negotiations for deliveries this year would be difficult due to the 70 percent increase in coffee prices last year. "We will have to look for other markets, perhaps Germany."
lph/Reuters
