Sigar, cacao, and coffee prices fell on Monday amid global recession concerns, which hurt the prices of most assets and commodities as the trade wars erupted.
China announced that new 34% tariffs on all US imports will go into effect on April 10, in response to Trump’s 54% tariff on Chinese products.
US President Donald Trump announced historic tariffs on most world countries last week, starting with a 10% base tariff and more for specific countries.
Following Wall Street’s severe decline last week, Trump defended the new tariffs as important medicine to rebalance the economy, adding he’s not concerned about the stock losses so far.
Trump threatened China with an additional 50% tariff if they implemented their retaliatory 34% tariffs on US products.
On trading, crude sugar prices settled at $18.81 a pound, paring the losses after plumbing a month low.
Cacao futures fell 5% at the London Exchange to 6023 pound per ton, while New York futures fell 2.65% to $8286 a ton.
Arabica coffee futures slid 3.8% to $3.52 a pound, while Robusta coffee shed 5.13% to $4850 a ton.
The US is the world’s top coffee and chocolate consumer, and one of the biggest sugar consumers worldwide.
