Pu’er Coffee

 As U.S. consumers face rising coffee prices, the Trump administration has made a major adjustment to its trade policy. On November 13, the White House published four separate statements announcing new framework agreements with Argentina, Guatemala, Ecuador, and El Salvador. These agreements introduce tariff reductions on key agricultural products—including coffee—in an effort to ease the pressure of escalating coffee prices by further opening the market. This policy shift, described by many observers as a “targeted trade adjustment,” reflects not only consumer-driven demand—U.S. Bureau of Labor Statistics data has shown a notable rise in coffee prices—but also complex geopolitical calculations and domestic political considerations. **01 A Mosaic of Differentiated Tariffs: Balancing Interests in Latin American Coffee Trade** The new tariff arrangement features a clearly layered approach. Across Latin America, the U.S. and the four partner nations created a hybrid structure buil...

 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...