The old-new POTUS immediately started the deportation of migrants to their home countries. When the Colombian administration refused to receive two airplanes of migrants from the United States, Trump threatened to raise Colombia tariffs by 25%.
Colombia tariffs – why is it so important?
To say that the first days of Donald Trump’s presidency are turbulent is definitely not enough. Together with Thursday’s focus on changes for the crypto society, the American administration heavily works on the deportation of people without U.S. citizenship. It includes Colombians who were forced to leave the United States.
However, the most important people in LATAM country’s administration, including Foreign Minister Luis Gilberto Murillo, didn’t agree on landing two planes with Colombian citizens from the United States. What happened next? Donald Trump rapidly threatened to impose 25% Colombia tariffs on all goods imported from the South American country.
From the market perspective, the potential rise of tariffs on Colombia would heavily impact the prices of coffee, the second most acknowledged agricultural asset in the world.
What else could impact coffee prices?
Traders interested in the agricultural market must understand the importance of trade relations between Colombia and the United States.
Colombia is the second biggest coffee exporter in the U.S. About 20% of all beans come from this country. However, Brazil struggles with potentially poor crops due to unfavorable weather conditions, which may lead to further price raises. Moreover, cocoa prices may also be impacted by new tariffs and weather conditions.
Keep in mind that coffee prices have been surging before Colombia tariffs. Over the last six months, coffee futures have skyrocketed by over 45%. It can be essential information for traders and people starting their day with freshly brewed hot beverages.
Colombia tariffs are paused – for how long?
The first days of Trump’s administration show how vital it is to stay alert on news regarding the market’s behavior. Even though the White House confirmed that both countries agreed to the terms proposed by the United States government, the uncertainty remains in the air. Colombia tariffs are just the tip of the iceberg when it comes to upcoming radical decisions from the Trump administration.
Once again, please conduct thorough research and analysis before making informed decisions, especially in those unsettled times. With information about the most important economic events, SimpleFX provides several tools for technical analysis.
