50% tariff for all goods imported to the United States from Brazil were adopted two weeks ago. A lot has already been written about how the tariff will shake global coffee trade, and America will look for cheaper alternatives for Brazilian coffee, while other countries, such as China, will start investing more in the country. But now the effects of tax are becoming less and less theoretical because American buyers are asking for postponement to Brazilian coffee deliveries.
As reported ReutersBrazilian export group Cecafe He recently stated that many American buyers ask for a delay of shipments in the hope that a trade agreement can be achieved between two countries, which would eventually reduce the sale price. President Cecafe, Marcio Ferreira, tells Reuters that buyers from the US have enough inventory to keep another 30 to 60 days in the hope that you can download a contract.
But even a delay in shipping would cause exporters and producers to lose their money. Experts who take advantage of the advance on replacement contracts, “the type of instrument used in pre -financing” will have to start the food fees related to more calculated interest and additional costs of general costs. Meanwhile, producers are subject to a “reverse freure market”, which means that more distant contracts are depreciated in relation to the closer. So that the shipping delayed by two months would bring an estimated loss of USD 10 per bag.
Complicating things is even more about the fact that even before the entry into force of the tariffs, the total number of exports of Brazil dropped drastically. In July, the export of green coffee to all countries fell by 28.1% from the place where last year.
Without commercial agreement or ending the tariff in sight, the constantly evolving situation will continue to play. The results we will only learn about in real time.
