Arabica Coffee Prices Fall on Possible Tariff Exemption

Arabica coffee futures fell to $3.6 per pound, the lowest in one month, after reports that US lawmakers are preparing a bill to exempt coffee imports from tariffs imposed since January 2017. The bipartisan proposal would cover roasted, decaf, and by-products such as husks and skins, though it would still require President Trump’s approval even if passed by Congress. Coffee markets have been volatile, with arabica nearing record highs earlier this week amid supply uncertainty and trade disruptions from US tariffs on Brazil, the world’s top exporter. A potential exemption could ease those pressures, as Brazilian farmers may release stockpiles into the market, adding supply. Weather is also in focus, with expected rainfall in Brazil key for next year’s crop, while Vietnam is set for its largest robusta harvest in four years, further weighing on prices.