How Trump's tariffs are pushing food and drink exporters closer to China

US President Donald Trump claims that his broad tariffs will create jobs, boost the American economy, and increase tax revenues for the US. However, experts warn that these tariffs could push exporters toward other countries like China and risk raising prices for American consumers.

Brazil, the world's largest coffee producer, faces a 50% US import tax, one of the highest tariffs imposed, making the US market less attractive for Brazilian exporters. This has led Brazilian coffee exporters to seek alternative buyers, particularly in China, due to its growing cafe culture and large market.

Supply chain specialist Hugo Portes describes China as a "shining light" for Brazil, noting that the tariffs are inadvertently strengthening trade ties with China. In July, over 180 Brazilian coffee firms registered to export to China, an unprecedented move that could open doors for more businesses in the Asian market.

Brazilian exporters are looking for new buyers for about 8 million bags of coffee beans annually sold to the US, as American importers pause orders to assess tariff impacts. Brazil has already signed a billion-dollar deal with China's Luckin Coffee, and companies like Daterra Coffee, represented by Fernanda Pizol, plan to diversify sales to China, Japan, and Europe, where demand is thriving.

For US coffee roasters, the tariffs could result in a 25% price increase for Brazilian beans in the coming months, according to coffee consultant Luke Waite, highlighting the potential negative effects on American consumers and businesses.