Brewing trouble: America's coffee addiction meets Trump's trade tariffs
The United States is the largest importer of coffee in the world, and its biggest supplier is Brazil. Earlier this month, US President Donald Trump threatened to impose 50% tariffs on Brazilian goods if President Luiz Inácio Lula da Silva continued a legal inquiry on former Brazilian leader Jair Bolsonaro.
Here's a look at the value of the coffee trade, US coffee-drinking habits and why your cup of coffee could be more expensive very soon, if Trump goes ahead with his latest tariff plan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
FTSE 100 LIVE: Markets calm as EU readies plan for no-deal trade scenario with US
The FTSE 100 (^FTSE) and European stocks were tepid on Monday morning, making small moves as the EU prepares a plan for a potential no-deal scenario in trade negotiations with the US. Leaders are set to meet early this week, according to a Bloomberg report, in order to formulate a plan ahead of the 1 August deadline set by president Donald Trump. As it stands, the US plans to implement tariffs on EU imports at 10% or higher, with fewer exemptions than once offered on the table, according to Bloomberg. Medical supplies, aviation and manufacturing equipment are among the items being haggled over. Negotiations are set to continue over the next fortnight. In previous weeks, the EU prepared a list of items imported from the US that it was prepared to slap higher levies on in order to strengthen its stance, while the US sent a letter saying the bloc would face a 30% tariff after the 1 August deadline, among other stipulations. London's premier index rose around 0.1% in early such as Antofagasta (ANTO.L), Anglo American (AAL.L) and Glencore (GLEN.L) led the index higher. Over in Germany, the DAX (^GDAXI) was flat. The CAC 40 (^FCHI) in Paris fell below the flatline. The pan-European STOXX 600 (^STOXX) also lacked direction, hovering slightly higher. Here's the US stock futures chart US stock futures higher as earnings season continues Our US team writes: US stock futures rose early Monday morning, as markets entered a critical week defined by megacap earnings and continued risk around President Trump's looming tariffs. S&P 500 (ES=F) futures climbed 0.2%, contracts on the Nasdaq 100 (NQ=F) gained 0.3%, while Dow Jones Industrial Average futures (YM=F) inched up 0.1%, reflecting a cautious tone after last week's record-setting rally in growth names. The Nasdaq advanced 1.5% last week, while the S&P 500 added 0.6%. The Dow lagged, finishing slightly negative. Investor focus is dominated by two topics for the upcoming week: policy clarity on trade and earnings from tech heavyweights. On Sunday, Commerce Secretary Howard Lutnick reaffirmed the White House's August 1 deadline for new tariffs, calling it a "hard stop" for compliance — before saying that he's looking at continued conversation beyond that date. Read more on Yahoo Finance Average UK house price down £5,000 The average price of a UK property coming to the market in July dropped by 1.2% to £373,709 in the largest monthly price drop at this time of year recorded in over 20 years of data, as new sellers lower their price expectations, according to Rightmove (RMV.L). According to the property site, this month's price drop of £4,531 comes as sellers lower expectations to catch buyers' attention amid a high supply of homes for sale. London, the country's largest regional market, leads the charge in price reductions with an overall drop of 1.5%, driven largely by Inner London, where prices fell by 2.1%. This market shift comes as sellers in the capital react to external factors, including changes to stamp duty and tax rules, while also trying to compete for the growing pool of potential buyers. Despite the price reductions, buyers are still active, with the number of sales agreed up 5% compared to this time last year. Furthermore, inquiries from potential buyers are 6% higher than in 2023, indicating continued demand. At the same time, affordability is improving for many buyers, helped by lower mortgage rates and rising wages. Read more on Yahoo Finance UK Good morning! Hello from London. Lucy Harley-McKeown here, gearing up to bring you the latest markets and economics headlines. This morning we have an update on UK house prices and also a trading statement from budget carrier Ryanair ( Trade tensions between the EU and US are also hotting up, so we'll be watching that, too. Let's get to it. Here's the US stock futures chart US stock futures higher as earnings season continues Our US team writes: US stock futures rose early Monday morning, as markets entered a critical week defined by megacap earnings and continued risk around President Trump's looming tariffs. S&P 500 (ES=F) futures climbed 0.2%, contracts on the Nasdaq 100 (NQ=F) gained 0.3%, while Dow Jones Industrial Average futures (YM=F) inched up 0.1%, reflecting a cautious tone after last week's record-setting rally in growth names. The Nasdaq advanced 1.5% last week, while the S&P 500 added 0.6%. The Dow lagged, finishing slightly negative. Investor focus is dominated by two topics for the upcoming week: policy clarity on trade and earnings from tech heavyweights. On Sunday, Commerce Secretary Howard Lutnick reaffirmed the White House's August 1 deadline for new tariffs, calling it a "hard stop" for compliance — before saying that he's looking at continued conversation beyond that date. Read more on Yahoo Finance Our US team writes: US stock futures rose early Monday morning, as markets entered a critical week defined by megacap earnings and continued risk around President Trump's looming tariffs. S&P 500 (ES=F) futures climbed 0.2%, contracts on the Nasdaq 100 (NQ=F) gained 0.3%, while Dow Jones Industrial Average futures (YM=F) inched up 0.1%, reflecting a cautious tone after last week's record-setting rally in growth names. The Nasdaq advanced 1.5% last week, while the S&P 500 added 0.6%. The Dow lagged, finishing slightly negative. Investor focus is dominated by two topics for the upcoming week: policy clarity on trade and earnings from tech heavyweights. On Sunday, Commerce Secretary Howard Lutnick reaffirmed the White House's August 1 deadline for new tariffs, calling it a "hard stop" for compliance — before saying that he's looking at continued conversation beyond that date. Read more on Yahoo Finance Average UK house price down £5,000 The average price of a UK property coming to the market in July dropped by 1.2% to £373,709 in the largest monthly price drop at this time of year recorded in over 20 years of data, as new sellers lower their price expectations, according to Rightmove (RMV.L). According to the property site, this month's price drop of £4,531 comes as sellers lower expectations to catch buyers' attention amid a high supply of homes for sale. London, the country's largest regional market, leads the charge in price reductions with an overall drop of 1.5%, driven largely by Inner London, where prices fell by 2.1%. This market shift comes as sellers in the capital react to external factors, including changes to stamp duty and tax rules, while also trying to compete for the growing pool of potential buyers. Despite the price reductions, buyers are still active, with the number of sales agreed up 5% compared to this time last year. Furthermore, inquiries from potential buyers are 6% higher than in 2023, indicating continued demand. At the same time, affordability is improving for many buyers, helped by lower mortgage rates and rising wages. Read more on Yahoo Finance UK The average price of a UK property coming to the market in July dropped by 1.2% to £373,709 in the largest monthly price drop at this time of year recorded in over 20 years of data, as new sellers lower their price expectations, according to Rightmove (RMV.L). According to the property site, this month's price drop of £4,531 comes as sellers lower expectations to catch buyers' attention amid a high supply of homes for sale. London, the country's largest regional market, leads the charge in price reductions with an overall drop of 1.5%, driven largely by Inner London, where prices fell by 2.1%. This market shift comes as sellers in the capital react to external factors, including changes to stamp duty and tax rules, while also trying to compete for the growing pool of potential buyers. Despite the price reductions, buyers are still active, with the number of sales agreed up 5% compared to this time last year. Furthermore, inquiries from potential buyers are 6% higher than in 2023, indicating continued demand. At the same time, affordability is improving for many buyers, helped by lower mortgage rates and rising wages. Read more on Yahoo Finance UK Good morning! Hello from London. Lucy Harley-McKeown here, gearing up to bring you the latest markets and economics headlines. This morning we have an update on UK house prices and also a trading statement from budget carrier Ryanair ( Trade tensions between the EU and US are also hotting up, so we'll be watching that, too. Let's get to it. Hello from London. Lucy Harley-McKeown here, gearing up to bring you the latest markets and economics headlines. This morning we have an update on UK house prices and also a trading statement from budget carrier Ryanair ( Trade tensions between the EU and US are also hotting up, so we'll be watching that, too. Let's get to it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
20 minutes ago
- CNET
Home Loan Rates Inch Higher for Borrowers: Mortgage Interest Rates Today for July 21, 2025
Check out CNET Money's weekly mortgage rate forecast for a more in-depth look at what's next for Fed rate cuts, labor data and inflation. The average for a 30-year fixed mortgage is 6.81% today, up 0.05% from seven days ago. The average rate for a 15-year fixed mortgage is 6.03%, which is an increase of 0.06% from the same time last week. To secure a lower mortgage interest rate, consider increasing your down payment, improving your credit score or purchasing mortgage points. What's behind high rates these days? Concerns about persistent inflation, threats of a global trade war and policy turbulence have created an uncertain economic outlook. In response, the Federal Reserve has adopted a wait-and-see approach and holding borrowing rates steady since the start of the year. Most economists predict the Fed will start lowering rates in September, particularly if President Trump eases some of his aggressive tariff measures or if the labor market continues to deteriorate. Prospective homebuyers shouldn't expect mortgage rates to become affordable overnight. While cheaper borrowing costs gradually trickle down to the housing market, the Fed doesn't directly set lenders' mortgage rates. In today's unaffordable housing market, mortgage rates are just one piece of the puzzle. High home prices and skyrocketing homeownership expenses, like insurance and property taxes, are further compounding the pressure on prospective buyers. The possibility of a job-loss recession is also pushing many households to tighten their budgets and take on less financial risk. When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders. About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates. What's going on with mortgage rates right now? The average 30-year fixed rate has hovered just below 7% for the last several months, resulting in cost-prohibitive monthly payments. Mortgage rates are closely tied to the bond market, specifically the 10-year Treasury yield, which reflects investors' expectations for inflation, labor data, changes to monetary policy and global measures like tariffs. "Rates could fall if inflation keeps cooling and the labor market softens," said Jeb Smith, licensed real estate agent and member of CNET Money's expert review board. "On the other hand, tariffs could create new inflation pressure. Add in government deficits and increased bond supply, and that puts upward pressure on rates." Even as the Fed eventually starts to lower interest rates, experts caution that significant market volatility is likely. As a result, homebuyers are adopting a more patient and strategic approach to financing, comparing various loan types and planning ahead. "Some are waiting, others are getting pre-approved now so they're ready to act if rates fall," said Smith. For a look at mortgage rate movement in recent years, see the chart below. Experts predict: Will mortgage rates rise or fall? While the housing market was expected to rebound in 2025, it has remained stagnant due to ongoing economic and political uncertainties. Median family income has not kept pace with the surge in housing costs, requiring many households to earn double or triple their salary to afford a modest home in some cities. Mortgage rates would have to drop significantly, close to 6% or below, to drum up significant homebuying demand. According to Smith, though, the more likely scenario is a slow and steady decline in borrowing costs. A return to the record-low rates, around 2-3%, we saw during the pandemic would only happen if the economy tipped into a severe recession. Fannie Mae's forecast puts rates around 6.5% by the end of 2025 and 6.1% by the end of 2026. Ongoing uncertainty could cause rates to stay high, or increase further. For instance, if tariffs cause inflation to reignite, which most experts and Fed officials expect, it could result in higher bond yields and fewer interest rate cuts by the central bank. Both would be bad for mortgage rates. Which mortgage term and type should I pick? Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront. 30-year fixed-rate mortgages The 30-year fixed-mortgage rate average is 6.81% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you'll have a lower monthly payment. 15-year fixed-rate mortgages Today, the average rate for a 15-year, fixed mortgage is 6.03%. Though you'll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner. 5/1 adjustable-rate mortgages A 5/1 adjustable-rate mortgage has an average rate of 6.02% today. You'll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option. Calculate your monthly mortgage payment Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET's mortgage calculator below can help homebuyers prepare for monthly mortgage payments. How can I get the lowest mortgage rates? Though mortgage rates and home prices are high, the housing market won't be unaffordable forever. It's always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right. Save for a bigger down payment: Though a 20% down payment isn't required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest. Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates. Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs. Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
Business Insider
21 minutes ago
- Business Insider
Canada First, Eh!
The whole thing about Canadians is that they're remarkably nice. Except lately, they haven't been feeling so warm and fuzzy, namely toward their neighbors to the south. Given everything that's going on — President Donald Trump's on-and-off trade war, his remarks about making the country the 51st state — Canada has a right to be annoyed with the United States. If your longtime bestie suddenly turned on you for no apparent reason, you'd be miffed, too. The US's sudden shift to frenemy status is going to cause some pain for Canada in the near term, especially as it stands to be a big economic loser from Trump's tariff tantrum. But ultimately, the turmoil may be a blessing in disguise for the Canucks. It's an opportunity for the country to step out of the star-spangled shadow and do its own thing. "It's really kind of a decoupling moment that is scary to watch in the short term. In the medium to long term, I have to say, it's an important wake-up call for Canada," says Matthew Holmes, the chief of public policy at the Canadian Chamber of Commerce. "If I look back on this in 20 years, I hope to be able to say that this woke Canada up to the need to be a little more strategic and have a little bit more of its own agency in the economy and in the kind of economy we want." If the US doesn't want to be as good of friends anymore, fine, Canada can make new, better friends, anyway. The US and Canadian economies are deeply intertwined. A shared language, geographic proximity, and interconnected supply chains have made the countries convenient strategic partners for decades. Three-quarters of Canada's exports go to the United States, and nearly half of its imported goods come from the US. In 2024, Canada was the third-largest source of imports to the US, behind China and Mexico. Canada was also the top destination for exports from the US. Several of the two countries' biggest industries, including automotives and energy, are highly interwoven with one another. Trump's belligerent stance toward Canada has thrown the country for a loop. While Canada isn't subject to the 10% blanket tariffs he's placed on imports from other countries, he's targeted specific areas with import taxes, including 50% tariffs on steel and aluminum, 25% tariffs on cars, 10% tariffs on potash and energy, and 25% tariffs on imports not compliant with the US-Mexico-Canada trade deal (formerly known as NAFTA). He's also planning to place a 50% tariff on copper come August. Most recently, the president threatened to put a 35% tariff on imports from Canada, blaming its retaliatory tariffs for the move, though it wasn't immediately clear what goods this would apply to. (The president says this is about fentanyl, though very little fentanyl comes to the US over the Canadian border.) A Trump administration official said in an email that they expected goods currently tariffed at 25% to go up to 35%, though no final decisions have been made by the president. Given Trump's persistent flip-flopping on tariffs, it's not clear whether they will actually take hold. This constant state of flux is making investors, at the very least, a bit more casual about the whole thing. The foreign exchange market, which tracks currency fluctuations, would indicate investors aren't too worried about it — the Canadian dollar isn't swinging based on Trump's pronouncements and has strengthened in recent months. "The market, so to speak, is seeing through a lot of this rabble-rousing," says Peter Morrow, an economist at the University of Toronto. The TACO trade — which is short for Trump Always Chickens Out and proxy for the idea that the president backs down from his most aggressive threats — is alive in the Great White North, too. People won't remember in 10 years why they don't like Nike anymore, but they will still think slightly ill of it. Regardless, the American president's trade antics are taking a toll on Canada. It's the country most hurt by the US trade war so far — the US is second. An analysis from the Yale Budget Lab found Trump's tariffs and Canadian countermeasures could cause Canada's economy to shrink by 2.1% in the long term. The trade dispute increases the chances of a recession in Canada, and it threatens to increase inflation. It also injects an incredible amount of uncertainty into the economy. It's next to impossible for Canadian businesses to plan for the future when they have no idea what the guy in the White House is going to do, day-to-day. "It's not only the tariff wall; it's kind of a wall of uncertainty that's going up between the two countries," says Julian Karaguesian, a course lecturer in McGill University's economics department. "The immediate effect it's having in the short term is a cooling effect on business investment, which is the dynamic part of the economy." Canada isn't taking the economic punch in the face lying down. Canada's new prime minister, Mark Carney, and the Canadian public have taken a hockey-esque "elbows up" approach to the US. A " Buy Canadian" movement has swept the nation. Canadians are swapping out American-made products and groceries for national ones, guided by forums and apps that help distinguish locally made goods from their Yankee counterparts. Liquor stores have pulled American whiskeys off the shelves. Instead of going to McDonald's, Canadians are hitting up A&W. They're opening up the CBC Gem streaming app to see what's on there instead of Netflix. "Brand damage can last a long time. People won't remember in 10 years why they don't like Nike anymore, but they will still think slightly ill of it," a guy who runs a website called Shop Canadian Stuff tells me. He spoke with me on the condition of anonymity, because his job doesn't know about his nationalist side hustle. Evan Worman, one of the moderators of a Buy Canadian subreddit, tells me that Canadians redirecting their purchasing power is a loss for the US because it's opening people's eyes to the quality of non-American stuff. "People are going to find a lot of the products that are getting imported from Europe have better safety standards, have higher quality control than the US, and it doesn't come with all the hang-ups and baggage of buying from somebody who wants to invade you," he says. Worman is originally from Alaska and has lived in Canada for a decade. When people don't realize he's not Canadian, he doesn't correct them. "People are genuinely very angry at us right now," he says. The attacks are also fostering a willingness to reshape the domestic Canadian economy: Local governments are getting rid of internal trade barriers that have prevented goods from flowing between provinces. "We've had, for decades, stupid, unnecessary rules between Canadian provinces," says Dan Kelly, the president of the Canadian Federation of Independent Business. "There has been a resurgence of that among our members that are now saying, 'Well, wait a minute, if the US market is uncertain, then I'll send my goods to Ontario rather than to New York.'" The federal government says knocking down interprovincial trade restrictions could boost Canada's economy by $200 billion annually. Karaguesian believes that may be an overstatement, but that and the domestic focus are emblematic of a bigger shift. "The people that are running the United States are saying we don't really have any allies right now — we have adversaries, and we have countries we can tell what to do," making the emphasis on a more unified Canadian economy all the more important, he says. Also on the shorter-term front, many Canadian businesses that hadn't yet bothered to get compliant with the US-Mexico-Canada Agreement because previous tariff levels were so negligible are getting their ducks in a row. Holmes, from the Chamber of Commerce, says that pre-Trump, only about half of the products crossing the border were USMCA compliant, because companies hadn't bothered to do the paperwork, but over the past four months, that's gotten to about two-thirds. He estimates that 90% of Canadian products should be compliant overall but notes that "it's just the work of getting it done." Canadian companies aren't rushing to move their operations to the US — which seems to be, in large part, Trump's goal in all of this — but they are adapting. "They're diversifying their sales, and they're diversifying their suppliers," says Patrick Gill, the vice president of the Business Data Lab at the Canadian Chamber of Commerce. "And so they're looking to other international markets where Canada has established free trade agreements." The United States' attitudes have sent Canada seeking improved trade agreements and relations elsewhere, including Europe, Asia, and the Global South. In an attempt to wean itself off the US, Canada is looking to expand where it sources from and where it sells. But just how far to go is a difficult calculation. "Some people say that Canada should take the easy win, stay linked to the US, and just ride it out. And there's other people who say that the United States is not a reliable trading partner anymore, and that Canada should strengthen its relationships with other countries. But developing those other relationships is not easy," says Morrow, from the University of Toronto. Canada has a strong skepticism of the US even during the best of times. Canada may be at its breaking point. Canadian political leaders and nationals feel like the US will never be satisfied, no matter how much ground they give. They find the 51st state jokes really offensive. And as much as the US-Canada relationship is extra strained right now, Canadians have long been skeptical of their larger neighbors. The US-Canada free trade agreement that predated NAFTA in the late 1980s was unpopular in Canada. Post-9/11, Canada resisted pressure from the US to join the Iraq invasion and chafed at President George W. Bush's "you're with us or against us" mentality. Some Canadian policymakers felt slighted by the Obama administration's attempts at pushing "Buy American" provisions and by the US-focused investments in the Biden administration's Inflation Reduction Act. The US and Canada have long grumbled over dairy and lumber. "Canada has a strong skepticism of the US even during the best of times," Morrow says, citing a quote from former Canadian Prime Minister Pierre Trudeau (Justin's father), who said living next to the US was like "sleeping with an elephant — no matter how friendly or even-tempered is the beast, if one can call it that, one is affected by every twitch and grunt." "The United States, for its entire history, has been a protectionist country except the time from the attack on Pearl Harbor in 1941 to the 9/11 attacks," Karaguesian says. "The United States was the biggest defender of free trade at the turn of the century because they were winning at that game." Trump says the US has "all the cards" in trade relations with Canada. The US certainly has more cards, but Canada isn't playing with an empty hand. The country has felt emboldened to strengthen trade relations with other partners, to revive its own manufacturing base, and to separate itself economically, culturally, and otherwise from the US. Kelly, from CFIB, compares Canada's retaliatory tariffs to economic chemotherapy — "you take the poison in order to try to fight the larger battle" — and adds that it says something that the country is so willing to dig in. "There is fairly significant resolve among Canadian businesses to press back," he says. To be sure, Trump's trade war is doing real damage to Canada — and, it should be said, to the US. Continuing the tit-for-tat won't mean mutually assured destruction for the neighboring countries, but it is one that will harm both, even if to different degrees. Canada's 40 million population can't replace the US's 340 million in terms of a consumer market. It will continue to depend on the US and, increasingly, others for commerce and trade. And the idea of a complete decoupling is quite unfathomable, unless Americans want to spend a ton more on energy and the entire North American auto sector is overhauled. At the moment, Canadians are fired up and holding their own. They don't appear to be poised to back down anytime soon — or to forget what's happening now. "Our elites need to wake up to the full nightmare of what Donald Trump's administration means in terms of trade," Karaguesian says. Much of the Canadian population already has — and years down the line, it could very well be to their country's benefit.
