Market Insights by Sosland Publishing

WASHINGTON — A broad range of new tariffs announced by the White House on April 2 may have a significant impact on the US coffee market, according to data from the Foreign Agricultural Service (FAS) of the US Department of Agriculture and the International Trade Administration (ITA). In an afternoon press conference, President Donald Trump announced a new universal minimum tariff of 10% on all goods imported to the United States, including food and agricultural products. The 10% minimum tariff will go into effect on April 5 while all others will go into effect on April 9, White House officials said.

The president held up a posterboard listing new individual tariff rates for at least 50 countries, from a 10% levy on imports from the United Kingdom up to 49% on imports from Cambodia.

Prominent on the list were several of the world’s top producers and exporters of coffee and coffee products. The United States is the world’s top importer and consumer of coffee.

Here are the world’s top-producing coffee ingredient countries in 2024, according to FAS data, along with the new tariff rates unveiled by the White House:

1. Brazil: 38% of global production – New tariff rate of 10%

2. Vietnam: 17% of production – New tariff of 46%

3. Colombia: 7% of production – New tariff of 10%

4. Indonesia: 6% of production – New tariff of 32%

5. Ethiopia: 5% of production – New tariff of 10%

6. Uganda: 4% of production – New tariff of 10%

7. India: 4% of production – New tariff of 26%

8. Honduras: 3% of production – New tariff of 10%

9. Peru: 2% of production – New tariff of 10%

10. Mexico: 2% of production – New tariff of 25%

According to ITA data, the United States’ combined top coffee and coffee product imports by value in 2023 were from:

1. Colombia: $1.4 billion

2. Brazil: $1.4 billion

3. Switzerland: $1.1 billion – New tariff of 31%

4. Canada: $568 million

5. Honduras: $463 million

6. Guatemala: $458 million – New tariff of 10%

7. Mexico: $364 million – New tariff of 25%

8. Nicaragua: $360 million – New tariff of 18%

9. Vietnam: $347 million

10. Indonesia: $269 million

Most coffee and coffee products are excluded from tariff exemptions outlined in the US-Mexico-Canada Agreement, making them subject to the extra 25% duties the president has promised against those nations.

In March, the National Coffee Association (NCA) asked the White House to exempt coffee and coffee products from any additional levies.

Outside of marginal coffee production in Hawaii, the United States has no domestic alternatives to imported coffee, “unlike other cases where tariffs may address unfair practices or incentivize domestic producers,” wrote Bill Murray, NCA president and CEO, in a letter to the Office of the US Trade Representative. Murray noted the coffee sector contributes more than $340 billion per year to the US economy.

On tariff fears and production disruptions, coffee prices rose to a record over $4 per pound in the wholesale market earlier this year.

This is a developing story. Return to Food Business News for the latest information about how the planned imposition of tariffs may impact the food and beverage market.