How a Trade War With Brazil Could Brew Trouble for U.S. Coffee Consumers originally appeared on Parade. U.S. coffee drinkers may face some uncertainty in the months ahead, as the Trump administration considers a 50-percent tariff on imports—an action that could drive up coffee prices nationwide.

The fight is rooted in years of political history between President Trump and the last two presidents of Brazil.

Nobel Prize-winning economist Paul Krugman believes tariffs President Trump has threatened to impose on countries, including Mexico and Brazil, are here to stay and will cost U.S. consumers.

Money managers from Aberdeen Group Plc to Franklin Templeton are staying bullish on Brazil, betting the country will withstand its unexpected turn in the epicenter of Donald Trump’s trade war. One reason: The fairly closed Brazilian economy,

Facing growing chaos, the European Union and numerous other countries are seeking to forge a global trading nexus that is less vulnerable to American tariffs.

Brazil believes it can withstand Trump’s 50 percent tariff, and aides to Lula say he is unlikely to shrink from a confrontation with the White House.

Indonesia also has agreed to purchase billions in U.S. energy, agriculture products and airplanes, Trump said July 15 in a social media post.

Right-wing Brazilians wanted sanctions against the judge prosecuting Brazil’s former president. President Trump opted for something far bigger — tariffs.