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Consumer Staples
Title: Coffee Import Tariffs Intensify Price Pressures on US Roasters Amid Soaring Global Coffee Costs
As the United States contends with new import tariffs on coffee from major producing countries, local roasters are bracing for steep cost increases that threaten to push already high coffee prices even further. This latest trade policy adds to the myriad challenges facing the US coffee industry, which depends heavily on imported green coffee beans and is grappling with tight supply and soaring global prices.
In early April 2025, the US government, under a policy dubbed the “Liberation Day” tariffs, imposed new import tariffs ranging from 10% to as high as 46% on coffee imports from 15 of the world’s top coffee-producing nations[1]. The countries affected include Brazil, Vietnam, Colombia, Indonesia, India, and others that supply nearly all of America’s green coffee.
Additionally, even decaffeinated coffee imports are impacted, as tariffs apply to tolling costs in Mexico and Canada where decaf processes occur[2].
The real cost of these tariffs is felt by US importers and roasters, who must pay the tariffs upfront when coffee enters customs. This sudden increase in costs forces many to tap additional credit or absorb higher expenses, which inevitably trickle down through the supply chain to consumers.
Royal Coffee, a major importer, notes that a single container of Brazilian coffee can cost over $150,000 at current market prices, so a 10% tariff translates into substantial added expenses[2]. For Vietnam’s coffee, the near 50% levy could disrupt the US robusta market entirely, leading to shortages or higher prices in robusta-based blends and instant coffees[1][2].
Roasters like Mighty Oak Roasters in New York are already facing uncertainty about whether upcoming shipments will incur these tariffs, complicating inventory and pricing decisions. They are also concerned about concurrent tariffs on packaging materials imported from China, some reaching 125%, further driving up operational costs[4].
The tariffs come on top of already elevated coffee prices due to adverse climate conditions in major coffee-growing regions like Brazil and Vietnam. For example, ground coffee retail prices hit a record $7.38 per pound in March 2025, up 84% since January 2020[4].
With only 1% of US coffee produced domestically (mainly in Hawaii and Puerto Rico), nearly all beans come from abroad[4]. Thus, the US coffee industry is highly sensitive to global supply shocks and trade policy changes.
The National Coffee Association (NCA) and other industry leaders have urged the US government to exempt coffee from these tariffs, highlighting coffee’s significant economic impact: coffee imports generate $43 in value per dollar of import and support 2.2 million American jobs[1][5]. The association warns that tariffs amid a broader cost-of-living crisis risk pushing coffee prices higher for everyday Americans.
Some roasters, such as San Francisco’s Wrecking Ball Coffee, emphasize their commitment to maintaining high-quality sourcing despite higher import costs, rather than switching to cheaper beans, underscoring the quality-versus-cost dilemma[5]. However, others acknowledge that increasing prices for customers may be unavoidable as import and supply chain costs soar[4].
The situation remains fluid. The US government announced a 90-day pause, temporarily lowering tariffs to a universal 10% during ongoing negotiations, though this does not completely lift the financial burden for importers[2][5]. There is also confusion around tariff applicability based on shipment transit routes and timing, adding complexity to import logistics.
Additionally, tariffs on other coffee-related inputs such as packaging threaten to compound cost pressures on coffee businesses, big and small alike[4][5].
For American coffee drinkers, the combined effect of soaring commodity prices, new import tariffs, and rising supply costs could mean:
Industry leaders hope that lobbying efforts continue to push for tariff exemptions to protect the affordability and diversity of coffee available to US consumers, while supporting the global network of coffee farmers and roasters.
| Topic | Details | |-----------------------------|----------------------------------------------------------------------------------------------| | Tariff Rates | 10% base tariff on most countries; up to 46% on Vietnamese robusta coffee | | Key Affected Countries | Brazil, Vietnam, Colombia, Indonesia, India, plus EU and Switzerland | | US Domestic Coffee Production| Less than 1% of total consumption | | Current Coffee Prices | Record retail prices of $7.38/lb ground coffee in March 2025 | | Industry Response | NCA and Specialty Coffee Association lobbying for exemption; roasters adjusting prices | | Additional Tariffs | Packaging and other coffee-related imports face high tariffs, further raising business costs| | Consumer Impact | Higher coffee prices, possible reduced blend diversity, increased cost awareness |
The newly imposed US import tariffs on coffee from major producers have intensified the financial squeeze on American coffee roasters already battling historically high commodity prices and supply chain challenges. With nearly all coffee consumed in the US being imported, these tariffs exacerbate inflationary pressures across the coffee value chain, risking price hikes for consumers and operational challenges for small and large businesses alike.
The evolving tariff landscape underscores the need for thoughtful trade policies that consider the vital role coffee plays in the US economy and daily life. Whether relief measures or tariff exemptions are forthcoming remains a critical issue for the future of coffee affordability and sustainability in America.
This article will be updated as new information emerges on tariff negotiations and industry responses.
