Global Coffee Prices Shift Amid Tariff Changes and Market Trends

Trump’s Tariff Removal Sparks Sharp Coffee Price Movements

The global coffee market experienced significant price fluctuations following President Donald Trump’s removal of 40% tariffs on Brazilian agricultural products, including coffee. Arabica coffee futures dropped sharply by 4.4% to $3.6020 per pound, hitting two-month lows, while robusta futures fell 4.2% to $4,438 per metric ton. This move aims to reduce U.S. retail coffee prices, which rose 40% annually by September 2025, contributing to inflation concerns. Despite the price plunge, supply risks remain due to La Nina weather impacts and recent floods in Vietnam’s coffee-growing regions (The Daily Record, 11 December 2025; Daily Coffee News, 11 December 2025).

Uganda Reports Record Coffee Export Earnings

Uganda has achieved its highest-ever 12-month coffee export performance, earning $2.4 billion from 8.4 million bags exported. This milestone highlights the growing importance of African coffee producers in the global market and may impact supply dynamics going forward (PML Daily, 11 December 2025).

Matcha Gains Traction Among Younger Consumers, Impacting Coffee Trends

Matcha’s popularity is rising rapidly, especially among Gen Z consumers, driven by social media trends. Although coffee remains about 50 times larger globally, matcha’s growth is causing major coffee chains, including Starbucks and Dunkin’, to expand their matcha offerings. Environmental challenges in Japan have limited matcha production, prompting premium cultivation efforts in China. This trend is creating a new beverage niche alongside traditional coffee sales (Global Coffee Report, 11 December 2025).

Sustainability Standards Dominate Green Coffee Purchases

Approximately 75% of green coffee bought by the world’s 11 largest buyers in 2024 met some form of sustainability certification. This reflects increasing industry focus on ethical sourcing and environmental responsibility, shaping future supply chains and consumer expectations (Daily Coffee News, 10 December 2025).

Instant Coffee Market Set for Growth Through 2033

Driven by lifestyle changes and the demand for convenience, the global instant coffee market is projected to grow steadily through 2033. Unique product innovations and rising population trends are expected to sustain this growth segment within the coffee industry (Taiwan News, 11 December 2025).

Vietnam Coffee Prices and Production Update

Domestically, Vietnam’s coffee price slightly decreased by 200 dong, trading around 117,400 – 118,800 dong/kg. Globally, Arabica coffee prices continue to rise sharply on the New York market, reaching a 17-month high due to the Brazilian real’s strength against the USD, which reduces selling incentives from Brazilian producers. Conversely, Robusta prices on the London market fell marginally (Tridge, 11 December 2025).