Arabica coffee futures climbed to record highs after President Trump withdrew threats to impose tariffs and sanctions on Colombia. The reversal removed a major source of supply uncertainty that had rattled traders for days. Colombia ranks as the world's second-largest coffee producer, shipping roughly 12 million bags annually to global markets. Trump had threatened economic penalties over Colombia's refusal to accept deportation flights, a dispute that raised fears of production disruptions and export halts. The withdrawal of those threats eliminated the tariff premium that had pushed prices higher. Traders now repriced the market based on fundamentals like weather conditions and crop yields rather than geopolitical risk. Coffee prices remain sensitive to Colombia's stability since disruptions there directly constrain global supply. The tariff dispute highlighted how easily political friction can ripple through commodity markets that depend on specific regions. Prices may ease if supplies remain stable, but any future threats to major coffee producers will likely trigger rapid market swings.