Brazilian President Luiz Inácio Lula da Silva said Thursday that he will impose retaliatory tariffs on the United States if President Donald Trump follows through on a pledge to boost import taxes

Economists and industry insiders are preparing for the possibility of pricier coffee in the coming months, a possible consequence of President Donald Trump threatening to impose a 50% tariff on imports from Brazil.

Lula was responding to Wednesday's threat by his US counterpart, Donald Trump, to impose a 50% import tax on Brazilian goods from 1 August. In a letter, Trump cited Brazil's treatment of former President Jair Bolsonaro as a trigger for tariff-hike.