Coffee prices in the United States are poised to rise further as President Donald Trump’s sweeping tariff measures target Vietnam, a major supplier of robusta coffee beans, Bloomberg reports.
The hefty 46% tariff on Vietnamese goods, among the highest imposed against US trading partners, threatens to disrupt supply chains and exacerbate existing cost pressures.
Vietnam is the world’s leading producer of robusta, the type of coffee primarily used in instant drinks and espressos. The new tariff comes at a time when coffee costs are already elevated due to harvest shortfalls in key growing regions.
New York futures for arabica, the higher-end variety favored by coffee shops, have remained near record highs due to adverse weather conditions. Similarly, robusta futures in London have surged by over 40% in the past year due to supply shortfalls.
On Thursday, robusta futures experienced an initial dip before paring losses, while arabica futures also declined. However, analysts warn that the long-term impact of the tariffs is likely to be upward pressure on prices.
The US relies heavily on Vietnam for its coffee supply, making the country its third-largest supplier. This dependence limits the alternatives available to US buyers seeking to avoid the tariffs.
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