Coffee price today April 6, 2025: Continuing record decline

Domestic coffee prices today

Domestic coffee prices today, April 6, 2025, in the Central Highlands region continued to decline to a record low compared to yesterday, fluctuating between 126,000 - 127,200 VND/kg.

Accordingly, traders in Dak Nong province are purchasing coffee at the highest price of 127,200 VND/kg. A sharp decrease of 4,000 VND/kg compared to yesterday.

Similarly, coffee price in Dak Lak province is 127,200 VND/kg, down 3,800 VND/kg compared to yesterday.

Coffee prices in Gia Lai province decreased by VND4,000/kg and were traded at VND127,000/kg.

In Lam Dong province, coffee prices decreased by 4,200 VND/kg and reached 126,000 VND/kg.

Vietnam is currently the world’s largest producer of robusta coffee and the third largest coffee supplier to the US market – the world’s largest coffee consumer. However, the US’s recent announcement of a reciprocal tax of up to 46% on coffee imported from Vietnam has put our country’s coffee industry at risk of being eliminated from one of its most important export markets.

This tax rate not only directly impacts the competitiveness of Vietnamese coffee but also creates a huge price difference compared to competitors such as Brazil, which is only subject to a 10% tax. Specifically, according to experts' estimates, the price gap between Vietnamese and Brazilian robusta coffee could be as high as 36%, equivalent to about $1,944/ton. Under normal conditions, the price of Vietnamese robusta coffee currently fluctuates around $5,390/ton, and having to add nearly $2,000 in tax will push the price beyond the acceptable threshold for US importers.

International agents and analysts believe that if this tax policy is officially implemented and prolonged, Vietnamese coffee will likely lose its foothold in the US. Some coffee roasting businesses in the US have begun to look for ways to switch to other sources of supply such as Brazil or India as an alternative.

Meanwhile, because not every country can produce robusta on a large scale and in large quantities like Vietnam, this could put the US in a competitive situation with the domestic coffee industry of exporting countries, causing domestic retail prices to increase sharply and affecting end consumers.

The 46% tax rate also puts Vietnamese businesses at risk of a sudden decline in orders, especially when they are expecting 2025 to be a record year with coffee export turnover reaching the 8 billion USD mark.

The Vietnam Coffee and Cocoa Association (Vicofa) and businesses in the industry are urgently petitioning the Government and relevant international organizations to intervene diplomatically and propose that the US remove coffee from the list of goods subject to high tariffs. At the same time, the Vietnamese coffee industry is also encouraged to expand its market to less volatile regions such as Europe, China, South Korea and the Middle East.

World coffee prices today

Coffee prices on the world market fell sharply on both exchanges:

Robusta Coffee (London):

Delivery in May 2025: Down 259 USD/ton, to 5112 USD/ton.

Delivery in July 2025: Down 283 USD/ton, to 5105 USD/ton.

Arabica Coffee (New York):

May 2025 delivery: Down 19.55 cents/lb, to 365.7 cents/lb.

July 2025 delivery: Down 18.45 cents/lb, to 363.3 cents/lb.

Risk aversion in asset markets is causing prices of many commodities, including coffee, to fall. In addition, investors are concerned that the imposition of tariffs could cause coffee prices to rise, negatively affecting global consumer demand.

However, low coffee inventories are providing support for prices. Specifically, ICE-monitored arabica stocks fell to just 770,476 bags, the lowest in 1.5 months. Similarly, robusta stocks also fell to 4,308 lots, the lowest in the past three weeks.

Global coffee prices continued to fall on Friday as the market remained under the influence of a series of tariffs announced by US President Donald Trump during his “Liberation Day” campaign. In response, China also imposed tariffs on imported goods from the US, raising concerns about a large-scale trade war, Reuters reported.

Rabobank believes that after this series of tax policies, coffee trade flows from affected countries will have to adjust and shift to other markets. However, this will make the supply chain less efficient and incur additional costs.

According to Rabobank, when the retaliatory measures take effect, American consumers – especially for items like coffee and chocolate – will pay higher prices. Ivory Coast, the world’s largest cocoa exporter, will be hit with a 21% tariff. Vietnam, the world’s number one producer of robusta coffee and the third-largest coffee supplier to the US, will be hit with a 46% tariff.

Dealers warn that the tariffs, the first since colonial times, will add costs and complexity to U.S. roasters and importers, who are struggling to pass on the cost of record-high coffee prices to consumers.

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Source: https://baonghean.vn/gia-ca-phe-hom-nay-6-4-2025-tiep-da-giam-ky-luc-10294550.html