The tariff hike announced by Donald Trump threatens a significant portion of Brazil's total coffee exports (which are generally directed to the North American market). It is expected that this move will lead the country to seek opportunities in China and the Philippines, according to GlobalData.
The recent report from GlobalData reveals which sectors relevant to CPG (packaged consumer goods) are most affected by tariffs within specific trade relationships and how companies in these sectors will be impacted. For example, higher tariffs between the US and China could allow Brazilian soybean exporters to capture the market share currently held by the US in the Chinese market.
"Brazilian coffee exporters should seek alternative markets to the US if the country follows through on its threats. They need to target alternative markets that combine high projected absolute growth with a high compound annual growth rate, thus reflecting a large coffee market..."