SOFTS-Arabica coffee prices ease, focus on Brazil tariffs

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

The United States, the world's largest coffee importer, has imposed a tariff on imports from the world's top coffee 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 were down 1.5% to $2.9425 per lb at 1346 GMT, 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 would hold a call next week with U.S. Treasury Secretary Scott Bessent in a bid to normalise relations with Washington.

"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 United States, which may need to seek additional supplies from Central America and Africa.

Robusta coffee LRCc2 fell 1.8% to $3,300 a metric ton.

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

Sugar prices eased, while cocoa edged higher.

Raw sugar SBc1 fell 0.1% to 16.07 cents per lb, while white sugar LSUc1 lost 0.2% to $462.50 per ton.

London cocoa LCCc2 rose 0.1% to 5,431 pounds per ton, while New York cocoa CCc2 gained 0.6% to $7,794 a ton.