LONDON, Apr 7 (Reuters): Coffee, cocoa and sugar futures traded on ICE slid on Monday as investors continue to fret about recession risks, with US president Donald Trump showing little sign of backing down from sweeping trade tariffs.
Trump on Sunday said countries would have to "take their medicine" when asked about the market sell-off, adding he would not do a deal with China unless the trade deficit the US has with the country is resolved.
World stocks plunged on Monday in response, with investors fearing the tariffs could spur higher prices, weaker demand and potentially a global recession.
The US is the world's largest chocolate and coffee consumer, and one of the world's top sugar consumers.
Trump last week imposed baseline levies of 10% on all countries, and higher tariffs on many. Hardest hit were Asian countries with China now facing total tariffs of more than 50% and top robusta coffee producer Vietnam hit with a 46% levy.
Robusta coffee was down 3.7% at $4,940 a metric ton at 1242 GMT, having hit its lowest in 2-1/2 months at 4,907, while arabica slid 2.5% to $3.5670 per lb, having earlier hit a two month low of $3.5550.
Indonesia, the world's third largest robusta exporter, faces a 32% tariff on US exports, while Brazil, the world's top arabica shipper and No. 2 robusta exporter, faces levies of just 10%.
Dealers said that both robusta and arabica were largely under pressure from fears over a global recession. Vietnam and Indonesia do not ship huge volumes of coffee to the United States.
In other soft commodities, London cocoa futures fell 1.9% to 6,251 pounds per ton, having hit a two week low of 6,104, while New York cocoa was up 1% to $8,596 a ton, having closed down 8% on Friday.
Elsewhere, raw sugar slipped 0.2% to 18.81 cents per lb, having earlier hit a month low of 18.62, while white sugar sank 0.3% to $536.50 a ton.
