Who will bear the additional cost of Brazilian coffee facing US tariff barriers?

The high 50% tariff imposed by the United States on Brazilian coffee has triggered a chain reaction in the coffee industry. As the world's largest producer, Brazilian coffee exporters are facing the dilemma of forced order suspension and warehouse backlog. Brazilian industry insiders criticize the US policy as "harming others and oneself", and are more concerned that this tariff storm will affect the global coffee market and consumers.

CCTV reporter Cao Xuan: Uberandia, a city in the southern part of Minas state, Brazil, is one of the largest Arabica coffee producing areas in the world. It is said that on American tables, one of the three cups of coffee comes from here. Who will ultimately bear the additional cost of the recent 50% tariff imposed by the United States on Brazilian coffee?

As the world's largest coffee consumer, the United States hardly grows coffee, but the coffee industry chain provides about 2.2 million jobs for the United States. Now that the United States has imposed high tariffs, it not only hits Brazil's exports, but may also backfire on the country's economy.

Claudio, Manager of Serrado Coffee Export Cooperative: We are talking about a product (coffee) that is almost not produced in the United States, and at the same time (coffee) is creating wealth for the United States. And by doing so (imposing tariffs), they are cutting off one of America's most dependent products. In the short term, the Brazilian market will be impacted, causing unemployment, but this will also affect the employment situation in the United States. We have learned that some American coffee shops that purchase 100% Brazilian coffee beans will now have to close down. Because there is no way to replace Brazilian coffee with coffee from other regions in the short term.

Claudio stated that starting from August 6th, all Brazilian coffee shipped to the United States will be subject to a 50% import tariff. Faced with the sudden increase in costs, some American customers have had to urgently halt the transportation of goods that have already been ordered. These goods are currently forced to remain in warehouses in Brazil, and the shipping time is unknown.

Claudio, Manager of Serrado Coffee Export Cooperative: Obviously, Brazilian coffee transported to the United States will be subject to a 50% tariff now. Who will ultimately pay the bill? We believe that the ultimate payer is the American people. Ninety percent of Americans often drink coffee. Will they switch to other products? We don't think so.

As the world's largest coffee producer and second largest consumer, Brazilian coffee is renowned worldwide for its excellent quality. Despite the resistance to exports to the United States, some coffee originally planned to be sent to the United States is expected to shift to European and Asian markets, or be temporarily stored and sold when the market recovers.

Coffee farmer Mario: 50% of our farm's coffee is exported to Europe, 30% to Asia, and 20% to the United States. Coffee can be stored for a longer period of time, and we can choose to temporarily store it and choose the best time to sell it. I believe that coffee trade must become increasingly free.