Removal of US tariffs alters the global coffee landscape.

After weeks of bilateral negotiations, the US government announced the removal of the additional 40% tariffs on Brazilian coffee, a measure that had been pressuring exports and raising costs for US roasters. The decision, formalized last Thursday (20), marks a turning point in the trade relationship between Brazil and the US, especially since Brazil is the world's largest supplier of the bean. 

The move follows a series of adjustments to American tariff policy: in October, tariffs on Vietnam had already been eliminated, and in November Washington extended the exemption to products not grown domestically, such as coffee. 

Among the potential market impacts, Hedgepoint highlights:

• Brazilian exports to the US, which have suffered a sharp decline in recent months, may begin a recovery process.
• Certified Arabica stocks on the ICE, currently at historically low levels, may recover as the flow of Brazilian coffee returns.
• However, the speed of this recovery will depend on Brazil's unique characteristics and the impact of the measure on other origins, many of which are in the midst of harvest.