International Affairs, Coffee, Tariffs, and the Story of 'Canadiano'

My Daily Coffee and Me

I have previously introduced British coffee chains and the history of coffee. While I am not particularly obsessed with coffee myself, I drink it every single day without fail. I live a life where I cannot work without coffee in the morning, and I cannot get through my tasks at night without it.
Coffee is produced all over the world, but some regions are heavily affected by tariff policies under the Trump administration. Furthermore, some interesting changes have been happening recently.In this article, I would like to explain what is happening in the coffee industry.

The Canadian-born coffee 'Canadiano'

First, I would like to introduce a coffee that has recently appeared in Canada called 'Canadiano.' The term 'Canadiano' did not exist before, but it has suddenly started being used recently.

The History of the Americano

To talk about this, we must first understand the history of the 'Americano.' In Japan, it is often called 'American,' but this is different from the American 'Americano.'

Coffee culture differs slightly between Europe and America. In Europe, coffee refers to espresso, which is characterized by a rich and bitter taste because it is extracted using atmospheric pressure.
On the other hand, drip coffee is mainstream in America; it is made by placing coffee grounds in a dripper and slowly pouring hot water over them, resulting in a lighter taste compared to espresso. Many common coffees in Japan also use this drip method.
What is called 'American coffee' in Japan is mostly drip coffee further diluted with hot water, which is rarely seen in the West. In Europe, espresso has been the mainstream for over 100 years, and espresso diluted with hot water has been called an 'Americano,' while espresso with milk has been called a 'latte.'

The name 'Americano' was not coined by Americans; it is said that Europeans called it that with a nuance of 'thin coffee that Americans drink,' carrying a slight, somewhat condescending mockery of them as country bumpkins.While the truth of this is uncertain, it is a plausible story when considering the historical background between Britain and America.

Confrontational Attitude Toward America

Against this backdrop, in recent years in Canada, partly due to a growing sense of confrontation with America, a movement has spread among some coffee shops to stop calling it an 'Americano' and start calling it a 'Canadiano.' The term 'Americano,' born from the subtle international relations of the West, is changing into 'Canadiano' in response to modern international affairs.

The Impact of Coffee and Tariff Policies

Next, I will explain the impact of the Trump administration's tariff policies on the coffee industry.
In recent years, due to factors such as poor weather, coffee prices in the international commodity market have been on an upward trend. However, with America's announcement of reciprocal tariffs, concerns about a decline in domestic demand in America caused coffee prices to drop temporarily. Since then, the announcement that tariff measures would be postponed for 90 days has caused prices to rise again, showing how prices are being heavily swayed by tariff-related news.

Coffee Producing Countries

Among coffee-producing countries, Brazil is the overwhelming leader, followed by Vietnam, Indonesia, and Colombia. In particular, Brazil and Vietnam are far ahead of the third-place country and beyond.

In the reciprocal tariffs announced by America, while the tariff rate for Brazil and Colombia was limited to 10%, high tariffs of 46% for Vietnam and 32% for Indonesia were imposed. This is a measure taken in response to the massive trade surpluses that Vietnam and Indonesia have had with America until now.
If these tariffs are implemented as planned, the price of Vietnamese and Indonesian coffee in America will rise significantly, making them harder to sell. As a result, coffee from regions with lower tariff rates, such as Brazil and Colombia, is likely to be consumed more in America.

Impact on the Japanese Market

So, what will happen in countries other than America? It is likely that because a large amount of Brazilian and Colombian beans will be consumed in America, the prices of those beans will soar, making them harder to obtain in other countries. On the other hand, since Vietnamese and Indonesian beans will be harder to sell in the American market, they may circulate in other countries at lower prices.
In other words, in Japan, we may have more opportunities to drink Vietnamese and Indonesian coffee than before, while Brazilian and Colombian coffee may become expensive and harder to obtain.Even at coffee shops, the options to enjoy coffee from various regions may decrease, or prices may rise.

In the canned coffee market, there are products that use Colombian beans, such as Coca-Cola's 'Georgia Emerald Mountain Blend.' If the procurement cost of beans rises, they may be forced to revise their prices.

Such movements are not limited to the coffee industry; companies in every sector are scrambling to review their procurement sources while assessing the impact of tariffs. Eventually, this will also affect the prices seen by general consumers.

Ueshima Coffee House

I have previously discussed the management strategies of companies like Starbucks, but my favorite coffee shop in Japan is Ueshima Coffee House. This company was founded in Kobe in 1933 and grew alongside the development of trade in Kobe from the Meiji era through the early Showa era.

Since I have a sweet tooth, I am particularly fond of Ueshima Coffee House's "Brown Sugar Milk Coffee." The iced version, especially when enjoyed in the summer, is superb. Served in a copper mug, this coffee is not only delicious but also visually beautiful, and I hope to visit again when I have the chance.

Coffee and Changing Times

Many people drink coffee every day, but in the future, we will likely see some product prices rise and the effects of tariffs gradually emerge. While that is unfortunate, the day may come when we look back on this era, which gave birth to the new term "Canadiano," and talk about how "things were like this back then."
Thinking about it that way, we can feel, even from a single cup of coffee, that we are currently in the midst of a process where the world is changing significantly.

Reference (Summary of coffee-related articles)

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