US coffee drinkers in for double shot of pain from tariffs

Open the Editor’s Marking Free

Rulla Khalaf, the FT editor, chooses its preferred stories in this week’s news.

US consumers are even more sharply growing in the price of coffee and chocolate as a result of the new tariffs of US President Donald Trump on the world’s largest producers.

Lever, which will hit coffee imports from Brazil, Colombia and Vietnam, prices in stores and cafes, when the bean costs have already increased in the supply.

The United States imports most of its coffee from Colombia and Brazil, the world’s largest world-quality Arab coffee maker, whose products will be subject to 10% tariffs with new events. 46% of the workload over Vietnamese products will also affect. The people of Southeast Asia are the main producer of the world’s cheaper cup of the world, which is usually used immediately in coffee, and another main exporter.

“Finally, the United States is the only major importer of coffee, the final people of coffee drinkers. Thus, consumers will suffer, “said Konya House, the head of the sale of the brand and the man’s research.

The Armenian said Tariffs: “Immediately” “Immediately” would smote the value of the green coffee to the fried, which will “inevitably” transmit to consumers. “At the end of the day, chocolate and coffee are not like cars or shipbuildings, which Trump tries to encourage more internal production,” he said. “The United States simply cannot produce those products.”

Coffee prices have already risen to receive high quality records in recent months due to unfavorable weather conditions in the main growing regions, including Brazil. Meanwhile cocoa prices Have almost tripled in the past year Due to the extreme weather and illness, the harvest is expected to return from the ivory coast and higher tariffs from Ecuador. Ivory Coast, the world’s largest Coca maker, was 21 percent hit.

Dirk Van De laid, the Chief Executive Officer of Mondelts, in February, said that Oreo cookies and trunk manufacturer was navigating “unprecedented cocoa”.

Starbucks General Executive Brian Nikkol warned during his earnings in January that “the higher prices of the consumer are already likely to affect the volume of our segments and the final income and yield.”

Starbucks’ shares were almost 3 percent of the initial market trading on Thursday. Hershey’s shares fell by 0.6 percent, and Mondelez shares were widely smooth.

The United States has only produced only a small part of her coffee and cocoa with whom Hawaii is the main internal source of both.

BMI products analyst Lucresia Kogliati said:

He added that “as a coffee production in the United States, we believe that the increase in tariffs will not be able to make high-quality consumer prices, which will eventually be granted higher consumer prices.”