Trump tariffs: Forget about eggs, coffee prices to spike



President Trump’s recent announcement of emergency tariffs on Colombian imports is likely to have a significant impact on coffee prices in the United States. On Sunday, January 26, 2025, Trump imposed a 25% tariff on all goods coming into the U.S. from Colombia, with plans to increase it to 50% within a week. This decision was made in response to Colombia’s refusal to allow two U.S. military planes carrying deported migrants to land in the country.

The tariffs are expected to exacerbate an ongoing surge in coffee prices, potentially leading to higher costs for American consumers. Colombia is a major coffee exporter to the United States, with coffee being one of the top imports from the country. 

The 25% tariff, which could soon increase to 50%, will likely result in a significant price hike for Colombian coffee in the U.S. market.

Several factors are contributing to the volatility in coffee prices. Coffee demand has outstripped supply for several years, leading to speculative buying that has further driven up market prices. Second, changing weather patterns have affected coffee production in various regions, contributing to supply uncertainties. And, of course, the newly imposed tariffs on Colombian goods, including coffee, are adding another layer of complexity to the coffee market.

The tariffs on Colombian imports extend beyond coffee and are likely to affect other major exports such as oil, gold, and flowers. Colombia is the fourth-largest source of foreign oil for the U.S., surpassing both Saudi Arabia and Brazil. The overall trade relationship between the two countries is significant, with total goods and services trade topping $53 billion in recent years.

This trade dispute stems from a broader conflict over immigration policies. President Trump’s aggressive deportation strategies have led to tensions with several Latin American countries, including Colombia. The Colombian President, Gustavo Petro, has insisted on treating returned migrants with dignity and respect, refusing to accept military flights carrying deportees. As this situation continues to unfold, it’s clear that the coffee industry, along with other sectors of trade between the U.S. and Colombia, will face significant challenges and potential price increases in the coming weeks and months.

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