Agricultural goods that cannot be grown domestically, such as coffee and cocoa, might be exempt from tariffs according to comments made by Commerce Secretary Howard Lutnick. Tariffs of 15% on most imported goods are part of the current trade deal framework with the EU, while Brazil faces a potential 50% tariff on its coffee. Lutnick indicated that if a country produces certain items not grown in the U.S., they could enter without tariffs. Bipartisan support exists for coffee tariff exemptions due to domestic supply concerns.
"If you grow something and we don't grow it, that can come in for zero. So if we do a deal with a country that grows mangoes or pineapples then they can come in without a tariff... coffee and cocoa would be other examples of natural resources."
"Unlike many other goods affected by recent tariffs, coffee is not produced at a scale within the United States that can meet domestic demand."
Throughout the interview, Lutnick continued to insist that tariffs would somehow be paid by foreign countries, despite the fact that tariffs are paid by U.S. companies, such as coffee importers, which often must pass down costs to other U.S. buyers, such as roasters.
There's plenty of horse trading still to do.
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