Trump’s Colombia tariffs threats raise pressure on coffee prices
President Trump’s threat to impose retaliatory 25% tariffs on Colombia briefly ignited fears of a further surge in already high coffee prices.
Why it matters: Beans from Colombia make up 20% of U.S. coffee imports, and the only source larger, Brazil, is struggling with weak crops after a series of weather disasters.
Catch up quick: On Sunday Trump said he would impose an emergency 25% tariff on all goods imported from Colombia — rising to 50% in one week — after the country refused to accept two deportation flights from the U.S.
A few hours later, the White House said it was pausing those tariffs after Colombia agreed to Trump’s terms.
Zoom out: Coffee prices were already surging before the tariff threat.
Coffee futures are up 45% in the last six months.
Bloomberg reported last week that wholesale prices recently eclipsed all-time highs set in the late 1970s, and that it was only a matter of days to a few weeks until retail prices followed suit.
As it stands, consumer coffee prices are already at multi-decade highs, per Consumer Price Index data.
The intrigue: Bird flu is causing record price shocks and shortages in eggs as well.
American breakfasts risk getting a lot more expensive, even as Trump begins a new term with a promise to lower grocery prices.
Of note: The White House statement indicated Trump was prepared to use the International Economic Emergency Powers Act of 1977 (IEEPA), which has not been used before to levy tariffs.
