U.S. coffee drinkers could pay more if Trump punishes Nicaragua's election ban
XLP•Nicaragua's political backdrop
Nicaragua's leftist leader has severely restricted the opposition in recent years, and changed the Constitution last year to establish a one-party system.
Coffee prices remain high and the industry wants exemptions
The U.S. buys 35% of all coffee exported by Nicaragua, according to the U.S. Department of Agriculture. Nicaragua receives half a billion dollars per year for its coffee exports to all countries.
Retail coffee prices in the U.S. remain near the highest levels since at least 2016, according to the U.S. Bureau of Labor Statistics, averaging $9.45 per pound in June.
A ban, or a heavy U.S. restriction, would hurt small farmers in Nicaragua, as well as the country's economy. It would also further squeeze the U.S. coffee market, which has been persistently tight for the last four years. Some of the largest U.S. suppliers have had production shortfalls that have aggravated the effects of President Donald Trump's tariffs.
