Competitiveness of Brazilian coffee falls in the USA with tariff preserved

Last week, the U.S. government removed the 10% tariff that had been broadly applied to imports since April of this year. However, it maintained the specific 40% surcharges on Brazilian coffee, which caused concern in the national export sector. According to data released by Cepea, this maintenance tends to reduce the competitiveness of Brazilian coffee in the United States, while other competing countries have obtained significant reductions or total elimination of trade barriers. The difference in treatment compromises Brazil's strategic positioning in the U.S. market. Still according to Cepea, sector agents expressed concern about the risk of structural substitution of Brazilian coffee in the U.S. consumption pattern. The continuation of this tariff policy may lead importing companies and retail networks to consolidate new suppliers, compromising the future recovery of Brazilian participation. On the other hand, the removal of the general 10% tariff may indicate an attempt to ...