Prices for orange juice and coffee are rising as the Trump administration’s new 50% tariff on Brazil is set to take effect in August, according to Investopedia. Brazil is the world's leading coffee producer, supplying approximately 30% of the U.S.'s coffee bean imports last year. Brazil supplies 75% of global orange juice exports and over half of the orange juice Americans consume, making the domestic market especially vulnerable. Over the past 20 years, U.S. orange acreage has declined by 50%. Florida’s orange production, the highest in the nation, has dropped nearly 90% during the same period. Coffee drinkers have more alternatives, with Colombia supplying 20% of U.S. imports and several other countries contributing smaller shares. These sources may also face tariffs that could raise import costs and consumer prices. Coffee drinkers who use sugar may face a double impact. Brazil is the world’s top sugar producer and could see exports above its quota taxed at 50%. Sugar futures have already risen 6% in the past month.
