Coffee prices are soaring due to a mix of tariffs and climate challenges. The U.S. has imposed significant tariffs on coffee imports from Brazil and Vietnam, which together supply over half of the world's coffee. This has led to a nearly 40% increase in coffee prices in the U.S. over the past year. Futures for arabica coffee have also risen sharply. Lawmakers have introduced the No Coffee Tax Act to address these rising costs, highlighting coffee's cultural and economic significance.
• The tariffs have destabilized an already volatile coffee market.
• Coffee is not essential for survival, but it is deeply ingrained in daily life.
• The coffee industry relies heavily on labor, often at low wages.
• There is a disconnect between the cost of coffee and the labor that goes into it.
The increasing price of coffee affects millions, from farmers to consumers. It serves as a symbol of the interconnectedness of the global economy. Understanding coffee's journey from farm to cup can shed light on broader economic issues and the impact of protectionist policies.
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