Withdrawal of tariff can reactivate coffee exports

According to a note released by Hedgepoint Global Markets, the United States government has removed the additional 40% tariffs on Brazilian coffee after weeks of bilateral negotiations. The decision, made official on Thursday (20), is described by the consultancy as a move that had been "pressuring exports and raising costs for U.S. roasters." The statement also highlights that the country is "the largest global supplier of the bean." The measure comes after recent changes in U.S. tariff policy. According to Hedgepoint, "in October, Vietnam's tariffs had already been eliminated" and, in November, Washington expanded the exemption to products that are not grown domestically, "such as coffee." The consultancy points out possible immediate effects and conditions for the market. The note states that Brazilian exports, which "suffered a sharp contraction in recent months," may begin a recovery process. Another point cited is the situation of ...