Trump's Colombia tariff threat raises fears on coffee prices

Catch up quick: On Sunday Trump said he would impose an emergency 25% tariffs on all goods imported from Colombia — rising to 50% in one week — after the country refused to accept two deportation flights from the U.S.

• A few hours later, the White House said it was pausing those tariffs after Colombia agreed to Trump's terms.

Zoom out: Coffee prices were already surging before the tariff threat.

• Coffee futures are up 45% in the last six months.
• Bloomberg reported last week that wholesale prices recently eclipsed all-time highs set in the late 1970s, and that it was only a matter of days to a few weeks until retail prices followed suit.
• As it stands, consumer coffee prices are already at multi-decade highs, per Consumer Price Index data.

The intrigue: Bird flu is causing record price shocks and shortages in eggs as well.

• American breakfasts risk getting a lot more expensive, even as Trump begins a new term with a promise to lower grocery prices.

Of note: The White House statement indicated Trump was prepared to use the International Economic Emergency Powers Act of 1977 (IEEPA), which has not been used before to levy tariffs.

Editor's note: This article has been updated with details of the White House announcement pausing tariffs on Colombia.