The U.S. coffee industry has requested that the Trump administration maintain the exemption of Brazilian green coffee beans from tariffs. The National Coffee Association also asked for instant coffee to be included in the tariff-free list, citing benefits for U.S. consumers and industry competitiveness.
The decision on coffee tariffs could impact U.S. consumer prices and the competitiveness of the domestic coffee industry, while also affecting trade relations with Brazil, the world's largest coffee producer.
The U.S. coffee industry has urged the Trump administration to maintain the exemption of Brazilian green coffee beans from potential tariffs, as part of public consultations reviewing trade practices. The National Coffee Association (NCA) also advocated for instant coffee to be included in the tariff-free list, emphasizing its importance for U.S. industry competitiveness and the availability of new products like ready-to-drink coffee cans.
The U.S. government is currently assessing Brazilian trade practices under Section 301, with the possibility of imposing a 25% tariff on various Brazilian imports. The NCA argues that ensuring tariff-free imports of coffee products would significantly benefit the U.S. economy and the nearly 200 million American adults who consume coffee daily.
Brazil, the world's largest coffee producer and exporter, supplies one-third of the U.S. demand. The industry experienced disruption from a previous 50% tariff on green coffee, which was later exempted. Instant coffee, however, remained subject to a 50% tariff until a Supreme Court decision, and is now under a 10% global tariff. The NCA president noted that existing tariffs have contributed to visible price inflation on popular coffee products, impacting U.S. manufacturers.
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