From the article: ... Lower US demand might eventually be good for coffee drinkers in other countries, though?
From the article:
On Tuesday, Arabica coffee prices hit an eye-watering new high on the Intercontinental Exchange at $3.48 a pound, according to the Wall Street Journal. This means the price is up more than 40% over the last three months and 79% year-over-year — and it's set to trickle down to the consumer level soon. However, this sharp increase can't be blamed on one single cause. Instead it's the result of several converging influences.
...
Arabica coffee prices are especially impacted, as Brazil, the crop's largest producer, faced a lengthy drought in 2024, leading to poor crop estimates for the upcoming year. Because of this, as International Comunicaffe reported, Volcafe specialists cut their 2025 and 2026 forecast for Arabicas to 34.4 million bags, down nearly 11 million bags from the September estimate.
Pricing issues were also compounded this week by President Donald Trump's threat to enact a 25% tariff on Colombian goods if the country did not allow his deportation planes to land in the nation. Of note, The Observatory of Economic Complexity explains that Colombia is America's second-largest supplier of coffee, just behind Brazil, meaning a tariff on imports from Colombia would likely make its products far more expensive for U.S. consumers.
This threat was seemingly diffused after Colombia's president Gustavo Petro agreed to the flights, but the Trump administration has said that the tariffs and sanctions will be held “in reserve” and could still be implemented at any time if Colombia backs out of the deal. And that was enough to send traders into a spiral.
“When President Trump even makes threats about tariffs, the minute you introduce uncertainty into a global trade system, and that’s what global trade is, things are going to get a little crazy,” Dan Gardner, the president of Trade Facilitators, a supply chain, trade, and logistics company, shared with CNN.
Lower US demand might eventually be good for coffee drinkers in other countries, though?
I love tea and have a collection of loose leaf teas of all sorts, across many years, from many places. I enjoy content about tea, love different brewing methods, etc. That said, I love coffee as...
I love tea and have a collection of loose leaf teas of all sorts, across many years, from many places. I enjoy content about tea, love different brewing methods, etc.
That said, I love coffee as its own, other thing, in the same ways.
Both of these are things I really love and dive deep into. It's sad that coffee is really struggling at this point for all sorts of reasons, not just tariff threats, but climate change and multiple factors.
From the article:
...
Lower US demand might eventually be good for coffee drinkers in other countries, though?
Theoretically yes, but overall production being down impacts us all. Coffee has been steadily rising in cost here in Europe too.
It's finally time for tea culture to shine
I love tea and have a collection of loose leaf teas of all sorts, across many years, from many places. I enjoy content about tea, love different brewing methods, etc.
That said, I love coffee as its own, other thing, in the same ways.
Both of these are things I really love and dive deep into. It's sad that coffee is really struggling at this point for all sorts of reasons, not just tariff threats, but climate change and multiple factors.
I have bad news about what country is by far the biggest grower and exporter of tea. Don't count on those prices staying the same either.
My plan was to become a self-hating addict of caffeine pills and energy drinks.
Either that or chicory will come back in fashion.