Brazilian Coffee Exporters Council Cecafé Warns Brazil's Tariffs Will Hurt U.S. Just As Much As Brazil – CoffeeTalk

Washington’s 50% tariffs on Brazilian imports are expected to negatively impact both the US, the world’s largest coffee consumer, and Brazil, the world’s largest exporter. Marcos Matos, CEO at Cecafé, stated that while the US tariffs will have a severe impact on Brazil’s foreign trade, the negative impact on the US economy will also be grave.

Both countries would experience social and economic impacts, as the US is the world’s largest coffee consumer and Brazil is its largest supplier, with a 33% market share. The impact on coffee roasters and manufacturers would be significant, as there would be no short-term substitute, which could also cause price increases, inflation, and supply difficulties.

According to a study by the National Coffee Association USA, coffee creates 2.2 million jobs and generates $343 billion in revenue, representing 1.2% of US GDP. For every $1 of coffee imported, $43 is generated for the US economy, and approximately 76% of the American population drinks coffee daily.

US coffee drinkers and businesses will pay the price for the US administration’s Brazil tariffs, with some vendors seeing a 30% rise in costs and some roasters saying that the tariff is “a tax on Americans’ mornings.” Brazil exported 8.1 million bags of coffee to the US in 2024, creating about $2 billion in revenues and accounting for 33 percent of all coffee imports by the US.

Brazilian coffee is essential for the blends the industry offers to the consumer market, giving body and sweetness to coffees from Central America and Colombia. Redirecting the high volume to the US is not an easy task, given that other markets are already supplied, with supplier countries, trade volume, and quality already established.

However, there is optimism about the Chinese market, which is seen as the destination for increased consumption and innovation in the way coffee is prepared and enjoyed worldwide.

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