(April 4): Coffee futures fell for a third day as the market digested a wave of US tariffs against the world’s top producers.

The most active contract for high-end arabica coffee dropped as much as 2.4% in New York, while the cheaper robusta variety declined as much as 2% in London. That reflects hefty levies against the biggest robusta producer, Vietnam, as well as tariffs on key arabica shippers Brazil and Colombia.

The measures come at a precarious time for the market. Costs for the commodity have already soared on the back of harvest shortfalls, and US coffee drinkers will now face an even pricier cup, likely leading to a drop in demand.

While the US is an agricultural powerhouse, it relies on other countries for a handful of soft commodities including coffee. Production concerns have seen prices more than double in the past two years.

Futures will continue to be “primarily influenced by supply concerns in key regions, despite an anticipated drop in US demand due to import reliance”, analysts from BMI, a unit of Fitch Group, said in a note.

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