US President Donald Trump has announced that new tariffs will be applied to a wide range of imports, which he claims will stimulate job growth, enhance the economy, and increase tax revenues in the United States. However, experts express concerns that these tariffs may compel exporters to seek markets in other countries, such as China, potentially raising costs for American consumers.
Brazil, currently facing a 50% import tariff on its coffee, is experiencing a surge in interest from exporters looking to do business with China. As a leading coffee producer, Brazil supplies approximately a third of America’s coffee. The high tariffs could discourage Brazilian exporters, pushing them to explore opportunities in China, where demand for coffee is growing, fueled by an expanding café culture.
Coffee trader Hugo Portes indicates that the tariffs might inadvertently drive Brazilian sellers closer to China instead of weakening their position in the market. In anticipation of the tariffs, over 180 Brazilian coffee companies began registering to export coffee to China in July. This shift is significant, given the potential impact on American consumers, who may face price increases between 7% and 25% for coffee.
In addition to coffee, India’s exporters of goods such as tea and seafood are likewise affected by newly implemented tariffs. The challenges faced by Indian producers include skepticism from American buyers regarding new orders and increased competition from countries like Africa. Trade representatives express optimism for diversifying into markets like China and Europe, but caution that they concern about the potential loss of competitiveness.
American businesses are struggling to adapt to these trade policies, with many warning that some of the tariff costs will ultimately be passed on to consumers. Retail giant Walmart has acknowledged that rising tariffs may lead to price increases in the near future. As a result, American consumers could bear a significant portion of these costs, particularly in sectors heavily reliant on imports.
Source: https://www.bbc.com/news/articles/c4gzrqd4pdjo?at_medium=RSS&at_campaign=rss