MILAN – Coffee futures plummeted on both coffee markets in early trading today, Friday 21 November 2025, following yesterday’s announcement that the White House was revoking the punitive tariffs it had imposed, last July, on a range of Brazilian products, including coffee and cocoa.
This follows a similar executive order by the Trump administration to remove tariffs on various agricultural products from other countries in an effort to mitigate sharp increases in the US shopping basket.
According to an LSEG report, retail coffee prices in the United States have risen by up to 40% over the past year.
Yesterday, Thursday 20 November, coffee prices closed higher after news emerged from Vietnam that heavy rains were hampering harvesting operations in Dak Lak province, the country’s main Robusta production area. Further rainfall is anticipated, which could potentially damage the crops.
In New York, the contract for March delivery gained 0.5%, ending the day at 376.65 cents.
In London, the January ICE Robusta contract rose 2.6% to settle at a 2-week high$4,631.
The removal of US tariffs on coffee was welcomed by President Luiz Inácio Lula da Silva and by the Brazilian coffee industry.
The measure will be retroactively applied and will see imports that arrived on or after the 13 November eligible for tariff-free entry and potentially for refunds on previously paid duties, according to the text of the order released by the White House.
Brazilian exports to the United States had fallen sharply in recent months but are now set to recover quickly, which will lead to a significant readjustment in trade flows.
“You can expect some thousands of bags of Brazilian coffee that were sitting in bonded warehouses to start moving quickly to U.S. roasters,” said commodities analyst Judith Ganes, president of J. Ganes Consulting in an interview with Reuters.