Coffee Prices Today 29/9: Have US 50% Tariffs Shifted Brazilian Coffee Flows?

Brazilian coffee exports to Colombia in August surged by 578% compared to the same period last year, while shipments to the U.S. fell by 47%. Colombian coffee farmers are calling for tighter import controls, fearing their premium coffee brand will be threatened if Brazilian beans are re-exported under the “produced in the Andean nation” label.

World Coffee Price Update

On the London exchange, the online price for Robusta coffee for the November 2025 delivery contract increased by 1.6% ($66/ton) last week, closing at $4,201 per ton. The contract for January 2026 delivery rose by 2.3% ($93/ton) to $4,182 per ton.

Similarly, on the New York exchange, the price of Arabica coffee for the December 2025 futures contract jumped by 3.7% (13.6 US cents/pound) last week, reaching 378.85 US cents/pound. The contract for March 2026 delivery increased by 3.7% (12.7 US cents/pound) to 358.9 US cents/pound.

According to Bloomberg, the Colombian coffee industry is facing difficulties as Brazilian coffee beans flood the country to evade high tariffs imposed by U.S. President Donald Trump.

Coffee farmers are calling for stricter import controls, concerned that Colombia’s premium coffee brand will be jeopardized if Brazilian beans are re-exported under the label “produced in the Andean nation.”

Data from the Brazilian Coffee Exporters Council (Cecafé) shows that Brazilian coffee exports to Colombia in August increased by 578% year-over-year, reaching 113,000 bags of 60 kg each. Exports to Mexico also saw a 90% increase. During the same period, Brazil’s coffee exports to the United States decreased by 47%.

Since the beginning of August, Brazilian coffee has been subject to a 50% tariff upon entering the U.S., while Colombian coffee is only taxed at 10%. The National Federation of Coffee Growers of Colombia (FNC) has warned of market “distortion” caused by this disparity.

The concern is that dishonest exporters might mix cheaper Brazilian beans with their premium product and package it under the “100% Colombian coffee” label.

The Federation’s president, Germán Bahamón, has called on the government to tighten controls to “prevent any trade triangulation that falsifies the origin” of the coffee.

“If anyone in the supply chain is engaging in these practices, they need to be reported immediately so that appropriate measures can be taken within the framework of export licenses,” Mr. Bahamón emphasized in a statement sent to industry leaders and customs authorities.

Brazil is the world’s largest coffee producer, while Colombia ranks third. However, Colombian coffee beans typically sell at a premium to the Arabica contract traded in New York, due to their perceived superior quality, whereas Brazilian coffee is usually traded at a discount.

Although Brazil’s coffee exports to Colombia saw a sharp increase in August, Cecafé stated there have been no cases of direct re-export to the U.S. The majority of shipments during the month were Robusta coffee – a variety that Colombia hardly produces in significant quantities.

“Our coffee is being purchased to meet domestic consumption needs, in the context of increased Colombian coffee exports to the U.S.,” said Cecafé President Marcio Ferreira. “Colombia is taking advantage of this opportunity to export the maximum possible amount of coffee.”

U.S. President Donald Trump announced the tariffs on Brazil in July, citing the country’s political persecution of his ally, former President Jair Bolsonaro. Despite pressure from the U.S., Brazil’s Supreme Court this month sentenced Mr. Bolsonaro to 27 years in prison for his involvement in a coup plot against President Luiz Inacio Lula da Silva.

Recently, Mr. Trump and Brazilian President Lula have agreed to meet to discuss the disagreement.

“Our mission is to protect the coffee produced by Colombian farmers and to preserve the most valuable asset we have: the trust and reputation of Colombian Coffee,” affirmed Mr. Bahamón.