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U.S. Seeks Tariff Relief for Coffee After Brazilian Exports Plunge

A tariff exemption move offers potential relief following a collapse in Brazilian shipments to the U.S.

Overview

  • U.S. coffee bean prices rose about 21% year over year through August, following a February record in arabica driven by climate shocks.
  • President Donald Trump’s 50% tariffs on many Brazilian goods that began on August 6 sharply increased import costs for a country that supplies roughly 30% of U.S. unroasted beans.
  • Cecafé reports U.S.-bound Brazilian shipments fell nearly 53% in September from a year earlier as buyers turned to Mexico, Peru and Ethiopia for replacement supply.
  • New York roasters and cafés, including Birch Coffee, paused most Brazilian orders, raised prices by about 50 cents per cup and $2–$3 per retail bag, and some introduced adjustable surcharges tied to tariff levels.
  • The administration has moved to place coffee on a list that could exempt it from tariffs, and lawmakers from both parties are advancing proposals to protect coffee products, though prices and supply remain uncertain.