Arabica Coffee Prices Surge as U.S. Weighs Tariffs on Colombian Beans
The possibility of the U.S. imposing punitive tariffs on Colombian coffee has once again driven Arabica coffee futures higher. Colombia is the world’s second-largest exporter of Arabica coffee and the largest exporter of washed Arabica beans. In 2024, Colombian coffee accounted for 19% of U.S. coffee imports, just behind Brazil’s 32% share. However, in the first eight months of this year, exports from both countries have shifted significantly. U.S. imports from Colombia rose 14.7% year-over-year to 3.3 million bags, mainly due to increased production in Colombia, while imports from Brazil fell 20.7% to 3.3 million bags. Currently, the U.S. imposes a 10% import tariff on Colombian coffee. Yet, statements from former President Trump suggest tariffs could be increased in the near term—he publicly mentioned on social media that “significant tariffs” on Colombian coffee will be announced soon. For the U.S. roasting industry, which had hoped to offset reduced Brazilian coffee imports...