U.S. Tariffs and Their Impact on Yemeni Coffee

The United States has imposed a 10% tariff on all goods imported from Yemen, including coffee, as part of a wider realignment of trade policy. The move has drawn concern from specialty coffee importers and Yemeni producers who depend heavily on access to the U.S. market.

In response, U.S.-based specialty coffee importer Al Mokha announced that it will absorb the full cost of the tariff, ensuring no price increases or supply disruptions for its American consumers.

“Customers will see no price increase and no interruption in supply,” the company said in an official statement. “We’re absorbing the cost to preserve market stability and continue supporting Yemeni farmers.”

The company noted that the first sign of the new tariff came in a recent purchase contract, which included a clause obligating the buyer to cover any future tariff charges—a first in Al Mokha’s history.

A Sudden Shift, Amid Ongoing Challenges

While the tariff presents a new financial burden, Al Mokha emphasized that it is not the only challenge in the supply chain. Other significant costs—often invisible to consumers—include credit card processing fees of up to 8.5% and domestic shipping rates, which have more than doubled over the past decade.

Despite broader inflation and rising global coffee prices, Al Mokha reports that prices paid to Yemeni suppliers have remained relatively stable in recent years, increasing by no more than 3% annually due to improved efficiency among local producers.

Prices Hold Steady, Shipping Fees Adjusted

To manage rising operational costs, Al Mokha has implemented a minor change to its shipping policy. A flat rate of $5 now applies to orders of 1 to 3 coffee bags, while shipping for 2 oz sample bags remains at $2.95.

The company reiterated its commitment to shielding consumers from price volatility and maintaining strong relationships with Yemeni farmers through direct, long-term trade partnerships.

Background: Yemeni Coffee Exports by the Numbers

Coffee is one of Yemen’s most important agricultural exports, renowned for its unique flavor profiles and deep historical roots. Despite years of political instability, economic hardship, and logistical constraints, Yemen’s coffee continues to reach global specialty markets—albeit in limited quantities.

Production:
In 2019, Yemen cultivated coffee on approximately 34,981 hectares, producing around 20,812 metric tons, according to the Food and Agriculture Organization (FAO). However, projections by ReportLinker indicate that production may fall to 77,000 bags (60 kg each) by 2028, down from 96,000 bags in 2023, reflecting an average annual decline of 3.5%.

Export Value:
Yemen’s coffee exports were valued at approximately $20.2 million in 2019, an 11% increase over the previous year—signaling growing global demand for high-quality Yemeni coffee.

Top Importing Countries (2023 – Unroasted, Non-decaffeinated Coffee):

• Saudi Arabia: 685,129 kg | $3.19 million

• United States: 151,767 kg | $2.07 million

• Japan: 126,717 kg | $1.64 million

• South Korea: 66,216 kg | $978,000

• United Arab Emirates: 116,503 kg | $543,000

In 2024, total U.S. imports of coffee, tea, and spices from Yemen reached $3.97 million, according to data from TradingEconomics.

Sector Outlook: Pressure and Potential

Despite ongoing challenges such as weak infrastructure, rising shipping costs, climate risks, and conflict, Yemen’s coffee sector continues to demonstrate resilience. The consistent demand for specialty coffee worldwide presents an opportunity for growth—if supported by sustainable investment, trade access, and logistical improvements.

Al Mokha’s decision to absorb the new U.S. tariff may offer short-term relief to consumers and help preserve Yemen’s presence in the American coffee market. But broader questions remain about the long-term impact of such trade policies on vulnerable agricultural economies—and on the producers who rely on them.