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Trump's tariffs on Brazil could make your coffee even more expensive

1. Trump proposes 50% tariff on Brazilian coffee imports impacting consumer prices. 2. Brazil is vital, supplying a third of U.S. coffee needs. 3. Coffee costs may rise due to higher tariffs and inflation. 4. Starbucks and J.M. Smucker could experience profit pressure from tariffs. 5. Exemptions for key commodities could mitigate impacts before August 1.

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FAQ

Why Bearish?

Rising costs from tariffs may hurt profits of impacted companies like J.M. Smucker. Historically, similar tariff impositions have led to increased consumer prices and reduced profits.

How important is it?

Coffee price changes affect consumer spending and inflation, crucial for S&P 500 member performance.

Why Short Term?

The tariff discussions are immediate, set to take effect soon, influencing coffee prices quickly.

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