@Huma Finance 🟣 #HumaFinance和
☕💸 COFFEE PRICES SKYROCKET IN THE UNITED STATES AFTER TRUMP IMPOSES A 50% TARIFF ON BRAZIL
Trump announced yesterday a 50% tariff on ALL Brazilian products starting August 1. Brazil is the world's largest coffee producer and supplies 33% of the coffee consumed in the United States. Coffee futures rose 3.5% immediately after the announcement.
Giuseppe Lavazza, president of the Italian coffee company, warned: "This will create A LOT of inflation in our industry". Coffee roasters cannot absorb a 50% increase in price. Starbucks, Folgers, Keurig, and Dutch Bros face massive costs that will inevitably be passed on to consumers.
The real reason for the tariff: Trump accuses Brazil of a "witch hunt" against Bolsonaro, who is facing trial for attempted coup after losing the 2022 elections. In his letter to Lula, Trump called the trial "an international disgrace" and defended his far-right ally.
☕ Coffee CANNOT be grown in the continental United States (only in Hawaii and Puerto Rico). For every $1 of imported coffee, $43 is generated in the U.S. economy. Vietnam (20% tariff), Indonesia (32%), and Nicaragua (19%) also face increases.
Lula responded angrily: "Brazil is a sovereign nation and will not accept any form of tutelage". He promised retaliation under the Economic Reciprocity Law. The coffee trade war has just begun, and your morning cup will be the first victim.
