White House Offers Broad Coffee Tariff Relief; Brazil in Question

"President Donald Trump on Friday ordered a major rollback of "reciprocal" tariffs on a numerous agricultural products not readily grown in the United States, including coffee. While the announcement was met with an industrywide sigh of relief in the U.S. - where higher green coffee prices have pressured traders, roasters, retailers and consumers - questions remain about the tariff status of coffee from the country's largest supplier, Brazil. AP reported on Saturday that Brazilian Vice President Geraldo Alckmin said Brazilian exports to the U.S. - including coffee, beef and tropical fruits - may still be taxed 40%."

"Brazilian trade and agriculture leaders have since confirmed the 40% figure, while the Brazilian coffee exporters council Cecafé issued a statement on Friday saying that the group is "in contact with its American counterparts to carefully analyze the situation and gain a clear understanding of the true scenario." The National Coffee Association of the United States (NCA) issued its own statement on Friday, saying it "applauds President Trump's action to remove reciprocal tariffs on most coffee imports, which will ease cost-of-living pressures for the two-thirds of American adults who rely on coffee each day." The statement did not explicitly mention Brazil, though the organization said it "urges all trading partners to advance similarly successful negotiations with the United States.""

"Brazil produces roughly a third of the world's coffee and supplies about 35% of U.S. green coffee imports by value. A 40% tariff on Brazilian coffee - combined with the elimination of 10% tariffs on other major coffee-producing countries such as Colombia or Honduras - would continue to dramatically reshape the global coffee trade."

President Donald Trump ordered a rollback of reciprocal tariffs on numerous agricultural products, including coffee, prompting relief across the U.S. coffee industry. Higher green coffee prices had recently pressured traders, roasters, retailers and consumers. Brazilian Vice President Geraldo Alckmin indicated that Brazilian exports to the U.S., including coffee, beef and tropical fruits, may still be taxed at 40%, a figure later confirmed by Brazilian trade and agriculture leaders. The Brazilian coffee exporters council Cecafé is consulting U.S. counterparts, while the National Coffee Association applauded tariff removals and urged similar negotiations by trading partners. Brazil supplies about a third of global coffee and roughly 35% of U.S. green imports, and a 40% tariff on Brazilian coffee would significantly reshape the global coffee trade.

Read at Daily Coffee News by Roast Magazine