Brazil‘s Coffee Producers Face 50% threat Amidst Trade Tensions with U.S.
Small coffee producers in Andradas, Brazil, are grappling with a notable threat to their livelihoods, with a reported 50% risk to Brazilian coffee.The situation is compounded by ongoing trade disputes between Brazil and the United States, reportedly linked to a court case involving former Brazilian President Jair Bolsonaro.
Agronomist Rafael Souza e Silva,who advises over 2,000 family exporters in Andradas,acknowledges the challenges farmers face in adapting to potential market shifts. However, he expresses optimism, suggesting that american consumers, while potentially facing higher coffee prices, are unlikely to abandon coffee for tea.
The political dimension of the trade dispute, as explained by Brazilian business consultant Thiago de Aragao, centers on U.S. President Trump’s imposition of tariffs on Brazil. Trump has stated these tariffs are connected to the legal proceedings against Bolsonaro, whom he considers a political ally.Trump has labeled the case a “witch hunt” and seeks its dismissal, a stance that brazil’s President Luiz Inacio Lula da Silva opposes, viewing it as a violation of Brazil’s sovereignty.De Aragao advises Brazilian negotiators to focus solely on trade matters and to avoid engaging with the Bolsonaro issue, characterizing it as a typical Trump tactic for distraction.He suggests that President Lula could achieve a favorable trade agreement by moderating his public statements, drawing a parallel between Lula and Trump as “showmen” who can both claim domestic victories from a triumphant negotiation. Brazil’s relatively lower dependence on U.S. trade,compared to other nations,provides a degree of leverage in these discussions.Despite a lack of confidence in President Lula, small farmer Paulo Risso, a resident of Andradas, expresses faith in the resilience of Brazilians during times of crisis, a trait he believes is less common among Americans.
