Trump slaps a 25% tariff on Colombia in anger, because they refused to take a plane full of deported immigrants.
Colombia is the largest supplier of coffee & flowers into the U.S. and Valentine's Day is coming up. Costs will go β¬οΈ and hopefully voters turn their anger to him and end this honeymoon period of approval ratings?! π’πΊπ²
Trump slaps a 25% tariff on Colombia in anger, because they refused to take a plane full of deported immigrants.
Colombia is the largest supplier of coffee & flowers into the U.S. and Valentine's Day is coming up. Costs will go β¬οΈ and hopefully voters turn their anger to him and end this honeymoon period of approval ratings?! π’πΊπ²
Coffee might take a hit that people feel. I think the bigger question is if this escalates quickly into a large tit-for-tat with random countries all over the world which seems likely and even if it doesn't happen there are more tariffs planned for next month. if prices increase drastically we need to hammer it relentlessly and ensure Trump owns it all. I think the perceptions of inflation alone were worth the <2% differential in PA + MI + WI.
Weβll see how big of a reaction the market has to this tomorrow - a lot of the upside the last few days was based on the (relatively) muted tariff tone coming out of the inauguration
I'd say the prices of coffee will be far more affected at coffee shops and coffee chains like Peet's, Philz Coffee and Starbucks. It depends on where it's being sourced.
I've had coffee at 7-Eleven locations and by contrast pay much less. I don't think coffee will go up that much there but I also am not aware of where the grains get purchased from.
Willingly making coffee more expensive has to be among the dumber options on the list of things to make more expensive. There's dumber ones out there, but coffee has to be near the top of the list. Americans love coffee and buy it frequently. It's exactly the kind of price hike that can be easily noticed and easily assigned.
This definitely seems to be an application of the adage
"If your only tool is a hammer, every problem looks like a nail"
It's not like there's much of a domestic coffee industry that would benefit anyway, aside from a few growers in Hawaii. Also coffee trees take 5 years to start bearing fruit and by then Trump's temper tantrum, (and his presidency), will be over.
Cut flowers, on the other hand, were not always grown abroad, so a protectionist policy could in theory revive the industry. However it would have to be thoughtfully and consistently applied and just biased on day-to-day caprice.
Yes that's true of pretty much all protectionism and it's the probably the biggest argument for free trade. We get more goods and services than if we made them all ourselves.
Biden has an industrial policy focused mainly around national security and climate change. Trump's is focused around coercion and vendettas. There's no logic to how his actions in terms of how it will make the US economy more resilient in the long run to justify his choice. Just Colombia did something I don't like, therefore tariff. He's threatened a bunch of other countries with similar measures.
My point is that if you decided that cut flowers were an industry of national importance, tariffs on Colombian imports would be part of that strategy, not that Trump's action was at all reasonable or well considered.
Trump slaps a 25% tariff on Colombia in anger, because they refused to take a plane full of deported immigrants.
Colombia is the largest supplier of coffee & flowers into the U.S. and Valentine's Day is coming up. Costs will go β¬οΈ and hopefully voters turn their anger to him and end this honeymoon period of approval ratings?! π’πΊπ²
Coffee might take a hit that people feel. I think the bigger question is if this escalates quickly into a large tit-for-tat with random countries all over the world which seems likely and even if it doesn't happen there are more tariffs planned for next month. if prices increase drastically we need to hammer it relentlessly and ensure Trump owns it all. I think the perceptions of inflation alone were worth the <2% differential in PA + MI + WI.
Weβll see how big of a reaction the market has to this tomorrow - a lot of the upside the last few days was based on the (relatively) muted tariff tone coming out of the inauguration
I'd say the prices of coffee will be far more affected at coffee shops and coffee chains like Peet's, Philz Coffee and Starbucks. It depends on where it's being sourced.
I've had coffee at 7-Eleven locations and by contrast pay much less. I don't think coffee will go up that much there but I also am not aware of where the grains get purchased from.
Jeez, if the price of coffee keeps going up, my Irish friend will have to put even more Jameson and whipped cream in his Irish coffee!
Actually, Columbia is #2 but your point is correct either way. (I always love to learn a little trivia looking something up.
"In 2023, about 80 percent of U.S. unroasted coffee imports came from Latin America (valued at $4.8 billion), principally from Brazil (35 percent) and Colombia (27 percent)." https://www.ers.usda.gov/data-products/charts-of-note/chart-detail?chartId=110079#:~:text=The%20United%20States%20is%20the,Latin%20America%20and%20the%20Caribbean.
Willingly making coffee more expensive has to be among the dumber options on the list of things to make more expensive. There's dumber ones out there, but coffee has to be near the top of the list. Americans love coffee and buy it frequently. It's exactly the kind of price hike that can be easily noticed and easily assigned.
Dems just need to make noise about it.
This definitely seems to be an application of the adage
"If your only tool is a hammer, every problem looks like a nail"
It's not like there's much of a domestic coffee industry that would benefit anyway, aside from a few growers in Hawaii. Also coffee trees take 5 years to start bearing fruit and by then Trump's temper tantrum, (and his presidency), will be over.
Cut flowers, on the other hand, were not always grown abroad, so a protectionist policy could in theory revive the industry. However it would have to be thoughtfully and consistently applied and just biased on day-to-day caprice.
bottom line though is price increase
Yes that's true of pretty much all protectionism and it's the probably the biggest argument for free trade. We get more goods and services than if we made them all ourselves.
Biden has an industrial policy focused mainly around national security and climate change. Trump's is focused around coercion and vendettas. There's no logic to how his actions in terms of how it will make the US economy more resilient in the long run to justify his choice. Just Colombia did something I don't like, therefore tariff. He's threatened a bunch of other countries with similar measures.
My point is that if you decided that cut flowers were an industry of national importance, tariffs on Colombian imports would be part of that strategy, not that Trump's action was at all reasonable or well considered.
Has Trump even had much of a honeymoon anyway? I saw a poll recently that had his disapproval at 55% already.