President Donald Trump's sweeping tariffs, meant to boost American jobs and revenue, are driving major exporters in Brazil and India toward China while U.S. consumers face looming price hikes.
Brazil Coffee Exporters Turn To China After 50% US Tariff
Brazil, the world's largest coffee supplier, was hit with a 50% U.S. import tax, prompting exporters to redirect shipments to China's growing cafe market, as reported by BBC News on Friday.
"If the tariffs are meant to weaken Brazil, in reality, it is pushing sellers closer to China," said Hugo Portes, a global coffee trader.
More than 180 Brazilian coffee firms recently registered to export to China, an "unprecedented" shift, according to Portes.
India's Seafood And Tea Producers Diversify Amid US Trade Pressures
Indian exporters of tea and seafood are also adjusting after Washington imposed 50% tariffs and additional levies tied to New Delhi's oil trade with Moscow.
"It will be a difficult time," said K.N. Raghavan of the Seafood Exporters Association of India, while adding that he was optimistic about securing new markets.
China and Europe are emerging as top alternatives for Indian producers, though exporters warn they could lose ground to cheaper African suppliers.
See Also: India Says ';Revealing' That US Is Trading With Russia After Trump Accuses New Delhi Of Reselling Oil For ';Big Profits'
Trump Downplays US-India Rift After Tariffs On Indian Goods
Trump downplayed tensions with India on Saturday, saying there was "nothing to worry about" in U.S.-India ties despite Washington imposing a 50% tariff on Indian goods over New Delhi's purchases of Russian energy.
He insisted he remained friends with Prime Minister Narendra Modi but criticized Modi's engagement with Russia and China.
Modi welcomed Trump's remarks, stressing that India and the U.S. share a "forward-looking Comprehensive and Global Strategic Partnership."
US Manufacturing Contracts As Tariffs Drive Up Costs
Trump's tariff strategy backfired on U.S. manufacturing, which shrank for the sixth straight month as companies reported rising costs, layoffs, and planning chaos.
The Institute for Supply Management's August PMI came in at 48.7%, below the 50% threshold for expansion and weaker than expected.
While new orders ticked up slightly, production, employment, supplier deliveries, and inventories all deteriorated.
Input prices rose and both imports and exports contracted. Business leaders directly blamed tariff policy for stagflation and uncertainty.
A transportation equipment executive said the industry was in worse shape than during the 2008–09 recession. Food and beverage companies have warned of higher costs due to Brazilian tariffs and USDA quota changes.
Electronics and machinery firms said reshoring was stalling due to raw material inflation. One electrical equipment maker raised prices by 24%, laid off 15% of staff and froze hiring.
Other firms across hardware, chemicals, and petroleum also cut forecasts, citing tariff-driven volatility.
Read More:
- Trump Warns Supreme Court Tariff Defeat Could Force US To ';Unwind' EU, Japan, South Korea Trade Deals -- ';Our Country Is Going To Suffer So Greatly'
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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