Brazil's Instant Coffee Industry Questions Why They Continue To Face 50% Tariffs Despite Removal Of Other Coffee Tariffs – CoffeeTalk

Brazil’s instant coffee industry is currently grappling with a 50% tariff imposed by the U.S., despite the removal of import charges on most other coffee exports from Brazil. This situation stems from a 2025 tariff decision made by U.S. President Donald Trump during tensions with Brazil’s previous administration under Jair Bolsonaro. Although various Brazilian coffee products, such as whole beans and flavored instant coffee, were exempt from the new tariffs, instant coffee itself was not, leading to confusion among industry stakeholders. Aguinaldo Jose de Lima, from the Brazilian instant coffee industry group ABICS, has highlighted this discrepancy, questioning the reasoning behind exempting flavored varieties while maintaining tariffs on regular instant coffee.

Despite facing these tariff challenges, Brazilian coffee exports soared to a record high of $15.6 billion in 2025, although overall export volumes fell significantly by approximately 21%, amounting to 40 million 60-kilogram bags. In December, following the tariff exemptions, instant coffee exports experienced a sharp decline of 35%, correlating the drop with reduced demand from key markets like the U.S., which has historically been a primary buyer of Brazilian instant coffee. The Brazilian Coffee Industry Association (ABIC) is actively collaborating with U.S. groups such as the National Coffee Association (NCA) to advocate against the tariffs, underscoring the economic drawbacks for both Brazilian producers and American consumers.

ABIC’s executive director, Celirio Inacio, acknowledges that resolving the tariff issue may not be immediate and is contingent on upcoming coffee crop conditions and weather factors. He expressed uncertainty about the stability of the 50% tariff moving forward, indicating that the industry is in a state of anticipation as they monitor production forecasts and pricing fluctuations. Overall, the Brazilian instant coffee sector continues to face significant hurdles due to the unresolved tariff situation.

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