The Elimination Of Most Coffee Tariffs Will Help US Roasters But Hurt Brazil – CoffeeTalk

In a significant policy shift, the Trump administration has decided to eliminate tariffs on most coffee bean imports, which is expected to benefit U.S. coffee roasters and importers. However, Brazil, the world’s top coffee producer, will experience adverse effects as its coffee exports to the U.S. will still incur a steep 40% tariff. While nearly all other producing countries will see the removal of a previous 10% tariff, the lack of complete tariff exemption for Brazil is seen as a limiting factor for its market access.

Analysts, including Judith Ganes from J. Ganes Consulting, predict that these changes will likely redirect U.S. coffee purchases towards Asian and Latin American producers, as the price differential adjusts import strategies. With most other coffee-exporting nations originally facing a 10% tariff, which has now been eliminated, and certain Asian manufacturers having even larger tariffs canceled, the competitive landscape is shifting.

Dutch bank Rabobank noted that while U.S. supply relief is on the horizon, Brazil’s 40% tariff poses a significant barrier, rendering its coffee less competitive. A California-based importer remarked that without full tariff exemption for Brazilian coffee, imports will remain unviable. Brazil, which has historically supplied a third of the U.S. coffee market, is now engaged in negotiations for a separate trade deal to alleviate its situation.

Marcos Matos from the Brazilian coffee exporters association Cecafe expressed concern over the market distortion caused by these tariff decisions, indicating that Brazilian growers are losing market share to their competitors. Luiz Saldanha, vice president of the Brazilian Specialty Coffee Association, reported a staggering 55% decline in Brazilian specialty coffee shipments to the U.S. over the past three months since the tariffs were imposed, predicting further escalation of this trend. He highlighted that existing stocks of Brazilian coffee in the U.S. are diminishing, leading the industry to seek alternatives as they look to replace Brazilian coffee in their blends.

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