SOFTS-Arabica coffee prices ease, focus on Brazil tariffs

LONDON, Aug 6 (Reuters) - Arabica coffee futures on ICE edged lower on Wednesday as traders assessed the potential fallout from a newly imposed 50% U.S. tariff on imports from Brazil.

The world's largest coffee importer, the U.S., has imposed a tariff on imports from the world's top exporter, Brazil, effectively freezing trade between the two countries.

"Right now you have to pay the tariff and who knows, maybe tomorrow there will be no tariff. Why take it there (to the U.S.) now, so the market is frozen," one trader said.

Arabica coffee prices KCc1 fell 0.7% to $2.9650 per lb by 1209 GMT, falling back slightly after rising by about 5% during the first two sessions of this week.

The U.S. tariffs are seen as supportive for prices in the short term as traders scramble to redirect trade flows and get their hands on stock.

Brazil's Finance Minister Fernando Haddad said on Wednesday he will hold a call next week with U.S. Treasury Secretary Scott Bessent in a bid to normalize relations with the U.S.

"It will be on Wednesday, and depending on how the talks go, it could advance to an in-person meeting," he told reporters.

Brazil is expected to boost exports to China and the European Union to help at least partially compensate for lost sales to the U.S., which may need to seek additional supplies from Central America and Africa.

Robusta coffee LRCc2 fell 2% to $3,292 a metric ton.

The strong pace of exports from the top robusta producer Vietnam has helped to keep the market well supplied.

Sugar and cocoa prices were little changed.

Raw sugar SBc1 rose a marginal 0.1% to 16.11 cents per lb, while white sugar LSUc1 fell 0.1% to $463.10 per ton.

London cocoa LCCc2 fell 0.1% to 5,423 pounds per ton, while New York cocoa CCc2 rose 0.3% to $7,776 a ton.