Coffee Prices Skyrocket Due to Trump's Tariff

[Financial News] As Donald Trump, President of the United States, imposed a 50% tariff on Brazil, coffee prices are soaring on the 10th (local time).
The previous day, Trump imposed a 50% tariff on Brazil, citing non-tariff trade barriers and the investigation of former Brazilian President Jair Bolsonaro, known as the 'Trump of South America', on charges of coup d'état. In response, Brazil imposed a 50% retaliatory tariff, calling it interference in internal affairs.
This caused Brazilian stocks listed in the US to plummet, and the Bovespa index, the representative index of the Brazilian stock market, also fell by 0.48%. In particular, the Brazilian real dropped more than 2%.
Due to Brazil being the world's largest producer of Arabica coffee, coffee prices are also soaring. The price of Arabica coffee traded in New York surged more than 3.5% on this day.
In contrast, the US capital market was not affected at all. The US stock market, in fact, rallied, ignoring the escalating trade tensions between the US and Brazil. This is because the US is not expected to suffer any significant damage from the clash with Brazil.


june@fnnews.com Lee Seok-woo reporter