Trump’s tariff could devastate Brazil’s small-scale coffee producers

In Porciuncula, Brazil, small-scale coffee farmer Jose Natal da Silva is losing sleep – not just to protect his arabica crops from pests, but over fears raised by a new 50% United States tariff on Brazilian goods announced by President Donald Trump.

The tariff, widely seen as a political move in defence of far-right Trump ally ex-President Jair Bolsonaro, who faces trial for an alleged coup plot, could slash demand and prices for Brazilian coffee in its top export market.

Brazil is the world’s largest coffee exporter, sending 85 percent of its output abroad. The US buys 16 percent of that, making it Brazil’s biggest coffee customer. Experts warn the tariff will hurt competitiveness, especially for family farmers who produce two-thirds of Brazil’s coffee and have fewer resources to weather downturns or shift to new markets.

Last year’s climate change-driven drought already devastated crops. Now, falling arabica prices, down 33 percent since February, are compounding losses. “We struggle for years, and suddenly we might lose everything,” said da Silva, who grows 40,000 trees and other crops to survive.

Nearby in Varre-Sai, Paulo Menezes Freitas, another smallholder with 35,000 trees, fears he may be forced to abandon coffee farming. He says the tariff also affects essential imports like machinery and aluminium. “It feels like the ground is crumbling under us,” he said.

Despite the blow, Brazil’s coffee exporters remain cautiously optimistic. The Council of Coffee Exporters of Brazil (Cecafe)’s Marcio Ferreira believes US buyers can’t afford to stop importing Brazilian beans. But on the ground, small farmers fervently hope for a rollback before livelihoods vanish.