Trump's Colombia tariff threat raises fears on coffee prices
Source: Axios
Updated 8 hours ago
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% tariffs 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.
Read more: https://www.axios.com/2025/01/26/trump-colombia-tariffs-coffee
Since coffee is a global commodity, even if something like this didn't impact other coffee export countries like Ethiopia or Jamaica or even here, with Hawai'i's kona crop, the commodities market sets the price trends.
Meanwhile I have a coffee plant overwintering in my basement at the moment. Am hoping that it will have its first bloom this year (it'll be 8 years old this year so now coming into maturity).
Aviation Pro
(13,754 posts)And right before Valentines Day.
Thanks, Motherfucker.
Lovie777
(15,942 posts)after shithole's threat?
BumRushDaShow
(146,207 posts)and as a commodity on the global markets, the speculators will run rampant like they do with "threats" to the oil supply (actual/realized ones or not).
Miguelito Loveless
(4,776 posts)so once again, the Felon has his way.
BumRushDaShow
(146,207 posts)They were already up before this latest brouhaha. Commodities react on "threats", whether "perceived" or "actual". "Supply" and "Demand" might come in second although these types of price rises often prompt "demand" (just in case) and that reduces the supply, forcing more upward pricing.
(above from here - https://www.seeitmarket.com/commodities-analysis-the-january-trend-trade/)
Oopsie Daisy
(4,950 posts)speak easy
(11,066 posts)no tariffs. not gonna happen
BumRushDaShow
(146,207 posts)It's no different than what happens if Turkey decides to threaten to attack the Kurds in Northern Iraq - then since Iraq is an oil-producer, that will "set the global oil markets off into the stratosphere" with speculative trading.
Ziggysmom
(3,693 posts)Five dollars, during the time she was shopping.
We are living in hell
BumRushDaShow
(146,207 posts)and just put in an order for some jars of instant this morning to be delivered today.
The k-cups are now showing "shipping in 1-3 weeks".
Ziggysmom
(3,693 posts)of the regular stuff. Thanks for the suggestion
BumRushDaShow
(146,207 posts)and saw the egg section almost empty with a taped-up sign apologizing about it being due to "supply issues", I thought about that for coffee too, so figured I better get some before they suddenly run out!
JustABozoOnThisBus
(23,920 posts)The cost of government is going up.
Attilatheblond
(4,969 posts)Not a big coffee drinker and have been mixing the root into my brew. I think I could manage if I can 'grow my own.
33taw
(3,007 posts)AverageOldGuy
(2,366 posts)Trump is claiming victory over Colombia, however, I just read a comment to an article in the Washington Post that stated:
Trump won nothing. For several years the US and Colombia have had a repatriation agreement whereby Colombians in the US illegally are deported: (1) scheduled flights about every two weeks; (2) deportees treated humanely; and (3) flights on civilian aircraft.
Colombia insisted that deportation flights be conducted as per the existing agreement, no unannounced military flights with people sitting the floor in handcuffs. Trump backed down and agreed to honor the existing agreement.
Maybe that's what we need to be shouting about.
I have searched for the existing agreement, found references to it, but can't find a copy.
BumRushDaShow
(146,207 posts)(I think both the Spanish and English versions were posted by the same poster in a different OP too)
And 45 will "claim" whatever bullshit he wants and the media will dutifully regurgitate it.
It's possible (or probable) that the updated agreements were on the Biden Administration webpages which were all taken down after the transition, so it might be harder to find outside of searching the Wayback machine or an equivalent web archive site.
GreenWave
(9,858 posts)he tells the world T is sending back "illegals" chained and shackled in military planes, so he refuses such barbaric treatment.
So IQ 45-47 = -2 decides to go the tariff route,
So far no punishment dealt to the righty tighties.
catbyte
(36,195 posts)I get it shipped from a coffee plantation on the Big Island and it's awesome.
NotHardly
(1,523 posts)Bengus81
(7,712 posts)Then you can still spew (as you set in a 15 car line at the drive through)...but the price of eggs,the price of eggs!
Which BTW MAGA MORANS is now going UP again.
Maninacan
(55 posts)8.99 coffee is now 12.99 . Just in the last few months. Will probably go up a lot now.
Gymbo
(148 posts)What would Trump do if Mexico and Colombia sent their American citizens packing back to the USA? They would be essentially homeless, and finding them housing and job assistance would be next to impossible. Trump would also become an instant bad guy for allowing that to happen.
Deminpenn
(16,435 posts)on KDKA, the Pgh CBS affiliate, today.
The story got a full 2 minutes out of a 30 minute newscast. It explained how global uncertainty about tariffs have driven up coffee futures to a record high and, more importantly, linked the uncertainty to Trump threatening tariffs on Columbia because they turned back a US deportation flight.