The U.S. under the Trump administration is introducing significant tariff changes affecting coffee imports. Key developments include a 50% tariff threat on Brazilian coffee and a 19% tax on Indonesian imports. U.S. businesses, particularly importers, will bear these tariffs, impacting roasters and consumers downstream. An interim deal with Indonesia lowered the proposed tariff but did not exempt its coffee exports. Brazil, providing 30% of the U.S. green coffee supply, faces potential disruption if the tariffs come into effect, significantly altering market dynamics.
The U.S. administration continues to upend established coffee supply-and-demand dynamics through new tariff threats, including a 50% tax on Brazilian imports and a 19% tax on Indonesian imports.
These new tariffs are paid by U.S. businesses, mainly importers, who send the money to U.S. Customs and Border Protection. The tariffs are likely to be felt downstream by roasters and consumers.
Trump announced the U.S. and Indonesia reached an interim deal reducing the tariff from 32% to 19%, and Indonesian coffee is not exempt from this tax.
Approximately 30% of the U.S. green coffee supply comes from Brazil, the world’s largest coffee producer, which could be significantly impacted by the 50% tariff threat.
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