replacing free-trade principles with ...
1. Increasing Coffee Prices Are Damaging Consumers Since last year, coffee prices in the United States have jumped close to 21%. For some, this isn't just an item on an expense sheet—it's part of their daily routine, their comfort, their "wake-up moment." When prices go up, it hits disproportionatelRead more
1. Increasing Coffee Prices Are Damaging Consumers
Since last year, coffee prices in the United States have jumped close to 21%. For some, this isn’t just an item on an expense sheet—it’s part of their daily routine, their comfort, their “wake-up moment.” When prices go up, it hits disproportionately hard on households with tighter pockets because coffee, as seemingly innocuous as it might be, is enjoyed by millions.
These increases in price are tied directly to tariffs already being levied on coffee imports from primary producing nations such as Brazil and Vietnam, from 10% to 50%. Consider the small Brazilian coffee farm or the Vietnamese processing facility—the tariffs add additional costs at each point in the supply chain that ultimately get transferred on to the consumer within American shops and restaurants.
2. Economic Pressure on Businesses
Coffee is not only a beverage—it’s an economic ecosystem. Cafes, restaurants, and small-scale roasters are taking a hit. Margins are constricted because they either need to absorb the increased cost (damaging profitability) or charge it to customers (damaging sales). Legislators view this as a pragmatic issue: if tariffs keep driving up prices, small businesses—particularly those that are already struggling post-pandemic—may end up closing shop or laying off workers.
3. Global Trade Considerations
Coffee is among the world’s most traded commodities. The United States imports most of its coffee, and tariffs upset a fragile supply-and-demand balance. Exempting coffee from tariffs, lawmakers say, will stabilize the market, ensure imports continue to flow uninterrupted, and preserve healthy trade with nations producing the lion’s share of the world’s coffee.
It’s also a gesture of goodwill. Vietnam and Brazil are important trade partners, and relaxing tariffs indicates good faith, which can translate into concessions on other products and sectors.
4. Political and Public Pressure
There is a political dimension, too. Coffee has cultural importance—it’s one of the U.S.’s most popular drinks. When it increases in price sharply, it’s something visible and something tangible to the public. Legislators are reacting to constituents who are growing tired of “tariff tax increases” on common items. Presenting a bipartisan bill to exempt coffee is partly a gesture to indicate that they are hearing about common concerns and doing something to shield consumers.
5. A Wider Economic Symbol
Waiving tariffs on coffee is not just a product-specific gesture; it’s emblematic of a wider policy: that trade policy should not end up punishing ordinary consumers in pursuit of strategic goals. It’s a reminder that policies, particularly trade policy, have real effects on the morning rituals, pockets, and lives of tens of millions of Americans.
Short, U.S. legislators are urging an exception to coffee from tariffs due to the existing import duties creating tremendous economic and social tension: consumers are paying extra, companies are suffering, and trade relations are in danger of being strained. By focusing on coffee, lawmakers want to minimize the daily burden, help small firms, and make a statement that trade policy is to be for people—not simply abstract economic purposes.
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Are Tariffs the "New Normal" in International Trade? The landscape of global trade in recent years has changed in ways that are not so easily dismissed. The prevalence of tariffs as a leading policy tool appears, at least on the surface, to indicate that protectionism—more than free trade—is on theRead more
Are Tariffs the “New Normal” in International Trade?
The landscape of global trade in recent years has changed in ways that are not so easily dismissed. The prevalence of tariffs as a leading policy tool appears, at least on the surface, to indicate that protectionism—more than free trade—is on the march. But appearances are deceptive, and it is only by excavating below the surface of economic, political, and social forces that created them that they can be rightly understood.
1. The Historical Context: Free Trade vs. Protectionism
For decades following World War II, the world economic order was supported by free trade principles. Bodies such as the World Trade Organization (WTO) and treaties such as NAFTA or the European Single Market pressured countries to lower tariffs, eliminate trade barriers, and establish a system of interdependence. The assumption was simple: open markets create efficiency, innovation, and general growth.
But even in times of free trade, protectionism did not vanish. Tariffs were intermittently applied to nurture nascent industries, to protect ailing industries, or to offset discriminatory trade practices. What has changed now is the number and frequency of these actions, and why they are being levied.
2. Why Tariffs Are Rising Today
A few linked forces are propelling tariffs to the rise:
3. The Consequences: Protectionism or Pragmatism?
Tariffs tend to be caricatured as an outright switch to protectionism, but the reality is more nuanced:
4. Are Tariffs the “New Normal”?
It is tempting to say yes, but it is more realistic to see tariffs as a tactical readjustment and not an enduring substitute for free trade principles.
5. Looking Ahead
In the future, there will be selective free trade and targeted protectionism:
If you would like, I can also include a graph chart illustrating how tariffs have shifted around the world over the past decade—so you can more easily view the “new normal” trend in action.
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