European Union negotiators are closing in on a trade deal with U.S. President Donald Trump that would cement higher tariffs than those granted to the UK, the Financial Times reported on Wednesday.

President Donald Trump posted letters to the leaders of Mexico and the European Union, saying they had not done enough to head off the new tariffs.

Arabica coffee prices trading in New York climbed more than 3.5 per cent on Thursday morning in response to Trump’s threat, before paring gains to trade around 2.5 per cent higher. Brazil is the world’s top producer of arabica coffee, which is used in higher-end brews.