50% tariff on Brazil<\/a>\u2014announced July 9 and set to take effect at the start of August\u2014targets a country that accounts for an estimated 75% of global orange juice exports and more than half of all orange juice sold in the U.S.\n<\/p>\n Coffee drinkers won’t be spared. The world’s largest coffee producer, Brazil supplied about 30% of all coffee beans imported to the U.S. last year.\n<\/p>\n
Prices for both commodities have surged since the administration’s announcement. Frozen concentrated orange juice prices for future delivery have surged more than 10% in the last week, and coffee prices have increased 6%.\n<\/p>\n
No Easy Alternatives <\/p>\n
Particularly for orange juice, surging prices in the wake of the tariff announcement reflect a simple reality: Few alternatives exist to replace Brazilian supplies.\n<\/p>\n
That’s in large part because U.S. orange production has dropped substantially in the past two decades. Weather challenges facing Florida and Texas orange groves, labor shortages, and a devastating citrus disease all have contributed to the decline.\n<\/p>\n
In the past 20 years, acreage devoted to U.S. orange production has fallen 50%. Production from Florida, the largest-producing U.S. state, has plummeted nearly 90% over the same period.\n<\/p>\n
More alternatives exist that could ease the impact on coffee drinkers. Colombia supplies about 20% of the U.S. coffee market, while Guatemala, Honduras, Peru, and Vietnam each account for about 5%. But those countries also face tariffs that could boost import costs and, ultimately, prices paid by consumers.\n<\/p>\n
In addition, coffee drinkers using sugar could get hit twice. Brazil is the world’s largest sugar producer; its shipments to the U.S. are subject to a quota exempt from import taxes. It’s not clear how the new tariff would affect that quota, but any supplies exceeding it presumably would face the full 50% levy. Prices for future sugar deliveries have risen 6% in the last month.<\/p>\n","protected":false},"excerpt":{"rendered":"KEY TAKEAWAYS The 50% tariffs on imports from Brazil that are set to go into effect next month…\n","protected":false},"author":2,"featured_media":22150,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-22149","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/22149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=22149"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/22149\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/22150"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=22149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=22149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=22149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}