Is your morning coffee about to get more expensive?

World cocoa and coffee prices fell on Thursday as investors fretted that President Donald Trump’s move to slap punishing tariffs on US imports would damage chocolate and coffee demand in the world’s top consumer of the products.

Sugar prices also fell, caught in the melee of tariffs as the US is also one of the world’s top sugar importers.

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Trump said he would impose a 10 per cent baseline tariff on all US imports, taking the maximum to nearly 50 per cenr for some countries and unleashing turbulence across world markets as investors fret about the end of a decades-long era of trade liberalisation.

The worst hit coffee growers

Top robusta growers Vietnam and Indonesia were targeted with 46 per cent and 32 per cent tariffs, respectively, top arabica and sugar grower Brazil was hit with 10 per cent tariffs for its goods, while top cocoa growers Ivory Coast and Ghana face 21 per cent and 10 per cent tariffs.

The first US tariffs on coffee imports since colonial times will increase costs and complexity to importers and roasters already dealing with near-record prices, experts said on Thursday.

The US is also a major importer of processed cocoa products like butter and powder from the EU, Malaysia and Indonesia. Trump slapped 20 per cent tariffs on EU imports and 24 per cent on Malaysian goods, while the 32 per cent tariffs on Indonesia of course apply to both robusta coffee and to cocoa products.

“We don’t know the (full) impact right now (but) there are no winners, this is bad for everyone. For the US, its inflationary while others lose access to the US, a huge market,” said a Europe-based coffee trader.

Arabica coffee futures on the ICE exchange, seen as a global price benchmark, settled down 3.6 cents, or 0.9 per cent, at $3.8525 per lb​​, having earlier fallen nearly 3 per cent, while robusta coffee futures slipped 0.2 per cent at $5,388 a ton, having earlier fallen 2.5 per cent.

How are tariffs effecting

London cocoa futures fell 1.4 per cent to 6,683 pounds per ton, having earlier fallen nearly 5 per cent, while New York cocoa gained 3.6 per cent to $9,291 a ton, having earlier risen nearly 6 per cent.

Dealers said New York cocoa was being boosted by weakness in the dollar as the harsher-than-expected Trump tariffs sent investors scrambling for bonds and gold.

A weak dollar makes dollar-priced cocoa cheaper for non-US investors.

Sterling for example gained versus the dollar, making sterling-priced London cocoa more expensive for investors outside Britain and prompting them to sell.

In other soft commodities traded, raw sugar ​​settled down 0.48 cents, or 2.5 per cent, at 19.11 cents per lb​, while white sugar sank 1.6 per cent at $543.80 a ton.