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US tariffs behind surge in global arabica prices, Brazil exporters group says
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US tariffs behind surge in global arabica prices, Brazil exporters group says
Aug 22, 2025 9:12 AM

SAO PAULO (Reuters) -The global arabica coffee market has surged in August with prices gaining more than 30% on the ICE exchange, driven mainly by steep tariff hikes from the United States, the head of Brazil's coffee exporters council, Cecafe, said on Friday.

The 50% tariff imposed on Brazilian coffee by the Trump administration since August 6 has made exports to the U.S. unviable and disrupted markets, Cecafe president Marcio Ferreira said in an interview.

"In meetings I had with the American side, I made it clear that the tariff hike created an environment of uncertainty and drove coffee prices up globally - and there may be no ceiling," Ferreira said.

"The market can't read where the price peak is," he added.

Arabica coffee futures on ICE, traded in New York, were quoted around $3.74 per pound on Friday, up from about $2.80 at the end of July.

Crop performance in Brazil, the world's largest producer and exporter of coffee, will not help anytime soon, Ferreira said.

The 2025 arabica crop collection, nearing completion, yielded about 10% less than expected, he said, adding that frosts this month are likely to reduce next year's output.

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