TIL CreativesA proposed bill in the U.S. aims to exempt coffee imports from tariffs, potentially reigniting trade with Brazil. Vietnam anticipates its largest coffee crop in four years, further contributing to the easing of supply concerns and impacting prices.
(Bloomberg) –Coffee futures retreated in New York and London on an improving supply outlook and as traders keep a close eye on tariff impacts.Futures for the premium arabica coffee variety fell as much as 6.5% in New York as the Washington Post reported that US lawmakers plan to introduce a bill to exempt coffee-product imports from tariffs. The robusta coffee type, most used in instant drinks, also fell as much as 8.9% in London on estimates of growing supplies from top exporter Vietnam. An exemption from tariffs could reignite trade between the US and top arabica supplier Brazil, said Hedgepoint analyst Laleska Moda. “If approved, the bill would ease pressure on US domestic and certified stockpiles,” she added.The exemption would apply to roasted and decaffeinated coffee, as well as coffee husks, skins and other products containing coffee, the newspaper reported. The legislation would still need President Donald Trump’s sign-off even if it were to succeed in the House and Senate, the paper said.Meanwhile, Vietnam is expected to harvest its biggest coffee crop in four years following good rainfall, according to traders, producers, exporters and analysts surveyed by Bloomberg News. The country is the world’s largest producer of robusta. BloombergCoffee prices have recently undergone big swings, with arabica nearing an all-time high earlier this week, partly due to supply uncertainty. Trump’s tariffs on imports from Brazil — the world’s top coffee grower — has been a big factor in price volatility. Many American coffee buyers avoiding new deals from the South American nation after the levy took effect last month, Bloomberg has reported.Live EventsWhile not an official exemption, the bill points toward potential relief from current trade disruptions, Rabobank analyst Oran van Dort said. A return to normal flows could see Brazilian farmers selling stockpiles, which in turn would ease current market tightness and lead to lower prices, he said.Weather has also driven supply concerns. Rainfall at the end of September and in early October will be critical for flowering in Brazil, Van Dort said. Adequate showers would support the 2026-27 arabica crop, set for harvesting in the middle of next year, he said.Add as a Reliable and Trusted News Source Add Now!
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