Reuters reports that the Trump administration has removed import tariffs on coffee beans from most countries, benefiting US roasters and importers, but Brazil remains subject to a steep 40% duty. This exclusion is expected to shift US demand toward Asian and other Latin American suppliers, further reducing Brazil’s market share. Brazilian exporters warn that the tariffs distort trade and hurt competitiveness, with US imports of Brazilian specialty coffee already down 55% in recent months. Negotiations for a separate deal with Brazil are ongoing, but the current policy continues to disadvantage the top global coffee producer. They write:
The Trump administration’s decision to eliminate tariffs on most coffee bean imports will be a boon for coffee roasters and importers in the U.S., but top global grower Brazil will suffer because its coffee remains subject to a steep tariff. […]
Analysts and coffee industry officials said on Monday the changes will further drive the U.S., the world’s largest market for coffee, to seek beans from Asia and Latin America, while snubbing Brazilian beans. […]
Brazil, which used to supply a third of the U.S. coffee beans, continues to negotiate a separate deal. […]
Brazil’s specialty coffee sector has seen shipments to the U.S. fall 55% in the last three months since tariffs started, Luiz Saldanha, vice president of the Brazilian Specialty Coffee Association, said, adding that things would get worse.
“Existing Brazilian coffee stocks up there (U.S.) are being depleted, the industry is seeking alternatives to replace Brazilian coffee in its blends,” Saldanha said.
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