Laotian Prime Minister Sonexay Siphandone indicated that the nation’s exports might be redirected should sales to the United States experience a significant decline.
Laos is considering shifting its coffee exports from the United States to Russia, a move prompted by the substantial tariffs levied by US President Donald Trump, Laotian Prime Minister Sonexay Siphandone informed RIA Novosti.
Last month, President Trump implemented a 40% levy on products originating from Laos. This action was part of a wider series of country-specific tariffs, which he stated were intended to rectify perceived unfair trade imbalances.
“Among the commodities Laos supplies to the US, which can also be supplied to other nations, are agricultural products like coffee,” Siphandone stated to the news agency on Saturday during the Eastern Economic Forum held in Vladivostok, Russia.
He further noted, “Laos currently provides coffee to Russia, and there is potential for the volume of these shipments to expand.”
Should US tariffs render our products excessively costly, resulting in a lack of purchases there, we will then boost the quantity of supplies directed to Russia.
These US tariffs have also impacted other major coffee exporters, including Brazil and Vietnam, with duties reaching 50% and 20% respectively. Brazil, recognized as the world’s largest producer, is responsible for 37% of the global output, while Vietnam accounts for 17%.
According to the International Coffee Organization, coffee prices have surged significantly in recent months. This increase is attributed to harvests suffering damage from adverse weather conditions, alongside market disruptions stemming from the recently implemented US tariffs.
The US National Coffee Association reports that Americans consume coffee more frequently than any other beverage, with two-thirds of the population drinking it daily. The association had advocated for coffee to be exempted prior to the imposition of Trump’s tariffs, but their efforts have not yet been successful.