Trump’s New Tariffs Threaten U.S. Coffee Imports

Sweeping new tariffs announced by President Donald Trump on April 2 may have a significant impact on the U.S. coffee market, according to data from the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture and the International Trade Administration (ITA).

During an afternoon press conference, President Trump unveiled a universal minimum tariff of 10% on all imported goods, including food and agricultural products. The 10% tariff will take effect on April 5, while additional country-specific tariffs will be implemented on April 9, according to White House officials.

The president presented a chart listing tariff rates for at least 50 countries, ranging from 10% on imports from the United Kingdom to 49% on imports from Cambodia.

Several of the countries listed are among the world’s largest coffee producers. As the top global importer and consumer of coffee, the U.S. could face significant supply chain challenges as a result.

According to 2024 FAS data, the leading coffee-producing countries and their new U.S. tariff rates are:

1. Brazil (38% of global production) – 10%

2. Vietnam (17%) – 46%

3. Colombia (7%) – 10%

4. Indonesia (6%) – 32%

5. Ethiopia (5%) – 10%

6. Uganda (4%) – 10%

7. India (4%) – 26%

8. Honduras (3%) – 10%

9. Peru (2%) – 10%

10. Mexico (2%) – 25%

Based on ITA data, the top 10 sources of U.S. coffee and coffee product imports by value in 2023 were:

1. Colombia – $1.4 billion

2. Brazil – $1.4 billion

3. Switzerland – $1.1 billion (31% tariff)

4. Canada – $568 million

5. Honduras – $463 million

6. Guatemala – $458 million (10% tariff)

7. Mexico – $364 million (25% tariff)

8. Nicaragua – $360 million (18% tariff)

9. Vietnam – $347 million

10. Indonesia – $269 million

Most coffee imports are not covered by tariff exemptions under the U.S.-Mexico-Canada Agreement (USMCA), meaning they are subject to the additional 25% tariffs President Trump has pledged to enforce against certain nations.

In March, the National Coffee Association (NCA) urged the White House to exempt coffee and coffee products from the proposed duties.

“Except for limited production in Hawaii, the United States has no domestic alternatives to imported coffee,” wrote Bill Murray, NCA president and CEO, in a letter to the Office of the U.S. Trade Representative. He emphasized that the coffee industry contributes over $340 billion annually to the U.S. economy.

Earlier this year, coffee prices rose sharply amid inflation and supply concerns, climbing to a wholesale high of over $4 per pound.

This is a developing story. Stay tuned to Food Business News for updates on how the new tariffs may reshape the food and beverage industry.