A full-blown trade war between the US and Columbia may have been averted for now with the latter backing down but tariff tensions continue to lurk. In the event of US President Donald Trump slapping 25% tariff on goods coming from Columbia, there are chances of retaliation by the Latin American country. Considering that Columbia accounts for nearly 20% of the coffee imports of the US, a tariff war might give headaches to coffee lovers in the US as they will have to shell out more for brewing Columbian coffee.
Beans from Colombia make a huge chunk of US coffee imports. The 2023 data from the US Department of Agriculture shows that about 80 percent of US unroasted coffee imports came from Latin America, mainly from Brazil (35 percent) and Colombia (27 percent). As for the other source - Brazil, it is struggling with weak crops after a series of weather disasters.
How the tariff war started
Tensions started to build when Colombia halted deportation flights for undocumented migrants which prompted US President Donald Trump to levy a 25% tariff, threatening to raise it to 50% if Colombia's President didn't comply. While initially, the Colombian President threatened to impose equivalent tariffs on the US, he later agreed to facilitate deportations in his plane.
This tariff carries wide-ranging implications, impacting the coffee industry, millions of consumers, and the broader economic ties between the United States and Colombia.
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Why US coffee lovers are fond of Colombia's coffee
Colombia is one of the world's largest coffee producers and Colombian coffee is much revered among lovers of the beverage as it uses Arabica, which is a superior quality coffee bean, known for its distinct taste. The coffee industry is a crucial part of the country's economy and provides many livelihoods.
Colombia’s volcanic, frost-free soil, coupled with around 80 inches of annual rainfall, provides the perfect conditions for growing exceptional coffee.
Colombian coffee isn't very strong. Its mild flavor and high-quality beans make it quite popular among Americans.
Many coffee lovers in the USA can find it very conveniently in grocery stores or coffee shops across the US and over the years have got used to its unique taste.
Arabica and Robusta are the two main types of coffee beans, However, Arabica with its lighter, sweeter taste, distinct acidity, and lower caffeine content, wins over most coffee lovers.
While for now, things seem to be settled, Colombia's trade war with the US could spell bad news for coffee lovers in America as the price of their favourite beverage may skyrocket and become less affordable.
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