Trump pays the exporters towards China and the American consumer pays the price economy

The escalation of US President Donald Trump in his commercial policies, by imposing wide customs duties on most countries of the world, has sparked a new wave of transformations in the global food and drink markets.

While Trump promotes these drawings as a means of “creating jobs, enhancing the American economy and increasing tax revenues,” the BBC warned in a report that this policy is increasingly pushing the exporters to China, threatening to undermine the position of the American market and it is likely that the cost of these measures will be reflected on American consumers.

Brazil is heading to China instead of America

Brazil, the world’s largest coffee producer, faces 50%American customs duties, and it is among the highest drawings imposed by Washington. This means, according to supply chains expert Hugo Portis, that “China has become a bright light in front of the Brazilian coffee exporters.”

“If the drawings aim to weaken Brazil, then it is in fact pushing the sellers to approach more than China,” he added.

According to the report, the Brazilian exporters are looking for two buyers for about 8 million bags of coffee that they were selling annually to American quotes, as Brazil provided a third of America’s consumption of coffee.

During July only, more than 180 Brazilian companies submitted export registration requests to China, and Brazilian producers signed a billion dollar deal last year with the “Lacon Kofi” series, which is described as the “Chinese alternative to Starbucks”.

The Brazilian exporter, Fernanda Pasole, explained that the “Datira Kofi” farm, which runs its sales, will expand in China and other markets if US requests decline, stressing that “the company has a waiting list from buyers.”

India is in trouble and is looking for alternatives

In turn, India was affected by similar American fees, as Washington imposed 50% fees on products such as tea and seafood, in addition to other punitive fees linked to the purchase of New Delhi Russian oil.

The Secretary -General of the Seafood Exporters Association in India, K. said. N. Raghavan, to the BBC that “many American buyers have frozen their shrimp orders due to mystery in negotiations with Washington,” but he expressed optimism that the talks may have resulted in a close breakthrough.

Raghavan pointed out that China, the second largest market for Indian fish, will become the main destination for exporters, with promising possibilities also in Europe where a free trade agreement is being negotiated.

As for the tea exporters, such as Mohit Agarawal from ASEANT and Exports, they confirmed that “China tops the list of alternative markets”, but he warned of an escalating competition by African producers who offer similar quality products and lower prices.

The American consumer pays the price

The report indicated that the cost will be reflected directly on the American consumer. According to expert Luc White consultations, the prices of Brazilian coffee bags may increase from 5 pounds by 25% in the coming months, which may add an increase of up to 7% to the price of a cup of coffee to the consumer.

In the seafood sector, Abu Al -Tahir Abu Bakr, sales manager at the Indian company “Gilani Marine Products”, confirmed that his American agents “have already put their orders despite the fees”, but stressed that the upcoming strategy will “diversify markets more towards China and Europe.”

Even the major American retail companies such as “Wall Mart” have warned that they would not be able to continue to absorb costs, and that prices will be raised soon on consumers. American commercial societies also pointed out that the local market depends almost completely on imports of coffee and seafood, and cannot produce these goods locally in the required quantities.

Changing commercial environment

According to the BBC, Trump’s wide drawings led to “the conversion of the world trade compass”, as suppliers in Brazil, India and others are looking for more stable alternative markets such as China and Europe.

At the same time, the final cost of these transformations falls on the shoulders of the American consumer, who finds himself facing higher prices in cafes and groceries.