The United States is once again sending shockwaves through the global coffee industry as the Trump administration rolls out new tariff policies that threaten to upend long-established trade flows. In just one week, a series of tariff-related announcements have cast uncertainty over major coffee-exporting nations—including Brazil, Indonesia, Vietnam, and China’s African trade relations—raising serious concerns among green coffee importers, roasters, and retailers in the U.S.
Who Pays the Price?
It’s important to note that these tariffs are not paid by exporting countries but by U.S. importers, who must remit the tariffs to U.S. Customs and Border Protection before the goods are cleared. In the specialty coffee sector—where profit margins are already tight—these costs are expected to trickle down to roasters and ultimately to consumers.
U.S.–Indonesia: Tariff Deal Finalized at 19%
On July 15, former President Donald Trump confirmed a tentative agreement with Indonesia, finalizing a 19% tariff on Indonesian imports to the United States. This is a reduction from the previously threatened 32% rate announced in April.
The agreement reportedly includes broader trade components, with Indonesia committing to purchase U.S. energy, agricultural products, and Boeing aircraft. However, Indonesian coffee is not exempt from the new tariffs, which are slated to take effect August 1.
As the world’s fourth-largest coffee producer and third-largest Robusta supplier, Indonesia plays a vital role in the global supply chain. In the 2024/25 cycle, the U.S. imported approximately 726,000 60-kg bags of coffee from Indonesia.
50% Tariff Threat on Brazilian Imports
In a more severe move, the Trump administration has proposed a sweeping 50% tariff on all goods imported from Brazil—the world’s largest coffee-producing country—also set to begin August 1.
Brazil supplies roughly 30% of all green coffee consumed in the United States. A tariff of this magnitude would significantly raise import costs and has already sparked alarm within the industry.
The Brazilian Council of Coffee Exporters (CECAFÉ) warned that such a policy would inevitably lead to higher prices for U.S. roasters and consumers, who rely heavily on Brazilian Arabica and Robusta beans for everything from espresso blends to instant coffee.
China Expands Duty-Free Access for African Coffee
In a move that could reshape African coffee exports, China announced plans to eliminate all tariffs on goods imported from all 53 African countries with which it maintains diplomatic relations.
This follows a December 2024 policy that removed tariffs for 33 Least Developed Countries (LDCs) on the continent. The new extension brings 20 additional nations into China’s preferential trade framework.
Analysts believe the decision could significantly boost African coffee exports to China—a rapidly growing consumer market—potentially diversifying revenue streams for coffee-producing nations like Ethiopia, Uganda, Kenya, and Rwanda.
Vietnam Tariff Holds at 20%
After months of uncertainty and the threat of a 46% tariff, the U.S. and Vietnam reached an agreement earlier this month to implement a 20% import tariff, effective August 1. As with Indonesia and Brazil, coffee is not excluded from this policy.
Vietnam is the world’s second-largest coffee producer, specializing in Robusta, and the U.S. is its second-largest export market, trailing only Germany.
The new tariff is expected to increase costs for U.S. roasters that rely on Vietnamese Robusta for instant coffee blends and commercial-grade espresso.
A Brewing Crisis for Importers and Roasters
These developments mark a volatile moment for the U.S. coffee industry. With four major supplier nations facing tariffs and no clear exemptions for coffee, the market is bracing for price increases, sourcing disruptions, and supply chain realignments.
For small importers and specialty roasters—many of whom operate on thin margins—the financial impact could be significant. Some may be forced to pass rising costs on to cafés and consumers, while others could reconsider sourcing strategies altogether.
As August 1 approaches, the global coffee sector is watching closely. The decisions made in Washington, Brasília, Jakarta, Hanoi, and Beijing could define the pricing, sourcing, and availability of coffee in the U.S. for years to come.