US Coffee Industry Urges Tariff Exemption
March 17 - 2025
Coffee Geography Magazine
National Coffee Association (NCA), based in Washington D.C., has urged the Trump administration to exempt coffee from any proposed tariffs, warning that the additional duties already imposed on Canada and Mexico could lead to a significant spike in U.S. coffee prices—potentially up to 50%. In a letter to U.S. Trade Representative Jamieson Greer, NCA President and CEO Bill Murray emphasized that coffee is a unique product with no viable domestic alternative, unlike other industries where tariffs might be used to address unfair trade practices or encourage local production.
The NCA, which represents over 200 members including coffee importers, exporters, traders, brokers, roasters, and retailers, highlighted the critical role the coffee industry plays in the U.S. economy. The sector contributes an estimated $343 billion annually and is deeply ingrained in American culture, with three out of four Americans being regular coffee drinkers. The association argued that imposing tariffs on coffee would not only disrupt this vital industry but also harm consumers and businesses across the supply chain.
The North American coffee market is highly integrated, with roasting, packaging, and trading operations spanning the U.S., Canada, and Mexico. The additional tariffs have introduced significant uncertainty, threatening to disrupt this interconnected ecosystem. While the United States-Mexico-Canada Agreement (USMCA) facilitates trade among the three nations, most types of coffee are not covered under the agreement. As a result, they would likely be subject to the 25% tariff immediately upon implementation, further exacerbating the challenges faced by the industry.
NCA President and CEO William "Bill" Murray
The NCA also called on the administration to avoid imposing tariffs on coffee-producing countries, warning that such measures would have "even more significant consequences." The U.S. is the world's largest importer and consumer of coffee, relying heavily on imports to meet domestic demand. Brazil is the largest supplier of coffee to the U.S., followed by Colombia and other Central and South American nations. Ongoing discussions between the U.S. and these countries aim to address trade concerns, but the uncertainty surrounding potential tariffs has already impacted global coffee markets.
The possibility of tariffs on South American coffee has been cited as a key factor driving recent record highs in coffee prices. In February, wholesale coffee prices surged to over $4 per pound, reflecting market anxieties about supply disruptions and increased costs. This price volatility underscores the fragility of the global coffee supply chain and the potential ripple effects of trade policy decisions on both producers and consumers.
The NCA's appeal to the Trump administration underscores the far-reaching implications of tariffs on the coffee industry. With no domestic alternative to imported coffee, tariffs would likely lead to higher prices for consumers, disrupt a $343 billion industry, and create uncertainty in a highly interconnected North American market. The association's call for restraint highlights the need for careful consideration of the broader economic and cultural impact of trade policies on one of the world's most beloved beverages.