Roasters Are Plowing Through Coffee Stockpiles As They Await Relief From Tariffs – CoffeeTalk

Coffee roasters in the U.S. are depleting their stockpiles in response to a 50% tariff imposed on Brazilian coffee, which constitutes a third of the coffee consumed in the U.S. The tariff was enacted under the Trump administration, amidst political tensions with Brazilian President Luiz Inacio Lula da Silva. The resulting disruption has significantly impacted the $340 billion U.S. coffee industry, leading to stranded cargoes, increased cancellation fees for orders, and a marked price rise for consumers—estimated at over 40% for retail coffee prices.

As stock levels dwindle, with projections suggesting they could reduce to critical levels of 2.5-3 million bags by December, U.S. roasters are forced to seek alternatives, incurring additional costs in the process. For example, some importers, like Lucatelli Coffee, have redirected supplies to Canada to avoid U.S. tariffs, albeit with steep transport expenses. Many roasters have resorted to canceling orders at cancellation fees of approximately $20 to $25 per bag to sidestep the import tax, resulting in a loss of coffee shipments.

In addition, the ongoing tariff has driven up prices for alternative coffee sources such as Colombian and Central American beans, which have risen by about 10% due to increased demand. This evolving situation is anticipated to persist, further complicating coffee availability and pricing for both businesses and consumers. Amid these struggles, industry stakeholders are cautious but hopeful for a resolution following trade discussions between the U.S. and Brazil, though the timeline remains uncertain. With inflationary pressures linking back to coffee costs, American consumers continue to adjust their purchasing habits in response to escalating prices.

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