How US Tariffs Impact Coffee

Posted on April 10th, 2025

What Tariffs Mean for Roasters, Importers, and You

Updated 4/10/25. The information below is subject to change. We will update this blog as we receive information that impacts coffee commerce.

Please reach out to us if you want to discuss this further. We’re here to navigate any and every challenge with you.

How Do Tariffs Work?

1. Importer Buys Coffee from Origin or Trader

  • This could be directly from a producing country (e.g., Colombia) or via a exporter.
  • The invoice includes the CIF value:
    • Cost of goods
    • Insurance
    • Freight
  • The coffee is exported.

2. Goods Arrive at U.S. Port of Entry

  • The shipment goes through U.S. Customs and Border Protection (CBP).

3. Tariff Assessed at the Border

  • CBP applies the applicable tariff rate to the declared value of the goods.
  • Example:
    • $100,000 worth of coffee FOB from a country with a 10% tariff = $10,000 tariff owed.

4. Importer Pays Tariff Before Goods Are Released

  • The importer or their customs broker pays the tariff to CBP.
  • This is often paid upfront or within a short window, adding to the cost of doing business.

Impact in the US

  • A tariff is an added cost of importing coffee on top of shipping, warehousing, and duties paid for by U.S. companies.
  • More expensive green coffee and, subsequently, roasted coffee. Importers, roasters, and consumers feel the cost.
  • Supply Chain Disruptions: Impact on freight costs + available lanes.
  • Potential disruptions in the availability of specific origins.
  • The likely result is lost business and jobs in specialty coffee.

Impact at Origin

Everyone along the supply chain feels the strain. Tariffs make it harder for roasters to keep sourcing the coffees they believe in, making it difficult for producers to plan for the future.

  • Overall, reduced demand from the U.S. market.
  • Market volatility makes planning and investing in operations challenging.
  • Buying patterns react to shifting consumer demand.
  • Prioritization of price point over social or environmental impact.


How Does This Impact You?

  • The tariffs will not affect any contracted coffee with a Bill of Lading (BOL) dated April 4 or earlier. However, the final sales price of spot coffee may be determined by replacement cost, including a partial or full tariff amount.
  • Any coffee with a Bill of Lading of April 5 onward will be subject to the Tariff % outlined in the chart below.
  • For the 10% tariffs, goods loaded on a vessel at the loading port and in transit on the final mode of transit before 12:01 a.m. ET on April 5 and entered for consumption after 12:01 a.m. ET on April 5 shall not be subject to the additional 10% duty.
  • Country-specific reciprocal tariffs shall not apply to goods loaded onto a vessel at the port of loading and in their final mode of transit before 12:01 a.m. ET on April 9 and entered after 12:01 a.m. ET on April 9.
  • UPDATE: Country-specific reciprocal tariffs are paused for 90 days as of 4/9/25. Goods loaded onto a vessel at the port of loading and in transit on the final mode of transport before the reciprocal tariffs take effect will not be subject to the baseline or country-specific ad valorem tariffs (as applicable). From 12:01 a.m. (ET) on April 5 to 12:00 a.m. (ET) on April 9, imports from these countries will be subject to the 10% baseline reciprocal tariff.

Current Tariffs by Country

 

Updated 4/10/25. We will continue to update this as we receive new information.

Here are the current tariffs impacting coffee from origins we purchased over the past year. This does not include all countries where coffee is produced.

Country New Tariff %
Bolivia 10%
Brazil 10%
Burundi 10%
Colombia 10%
Costa Rica 10%
Democratic Republic of Congo 11% 10%
Ecuador 10%
El Salvador 10%
Ethiopia 10%
Guatemala 10%
Honduras 10%
Country New Tariff %
India 26% 10%
Indonesia 32% 10%
Jamaica 10%
Kenya 10%
Nicaragua 18% 10%
Papua New Guinea 10%
Peru 10%
Rwanda 10%
Tanzania 10%
Uganda 10%
Vietnam 46% 10%
Yemen 10%
Country New Tariff %
Bolivia 10%
Brazil 10%
Burundi 10%
Colombia 10%
Costa Rica 10%
Democratic Republic of Congo 11% 10%
Ecuador 10%
El Salvador 10%
Ethiopia 10%
Guatemala 10%
Honduras 10%
India 26% 10%
Indonesia 32% 10%
Jamaica 10%
Kenya 10%
Nicaragua 18% 10%
Papua New Guinea 10%
Peru 10%
Rwanda 10%
Tanzania 10%
Uganda 10%
Vietnam 46% 10%
Yemen 10%

*Mexican goods are tariff-exempt if the goods are USMCA-compliant.

What Can You Do?

  • Write your representatives and voice your concerns. We have a sample letter you can edit and send below.
  • Prepare your business, customers, and partners for further price increases.
  • Collaborate within the industry. Chat with fellow roasters and encourage them to take action as well.
  • Call us to chat about your sourcing strategy in this new landscape.

Sample Letter to Your Representatives

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Your Email]
[Your Phone Number]
[Date]

The Honorable [Congressperson’s Name]
[Office Address]
[City, State, ZIP Code]

 

Subject: Urgent Request to Remove Tariffs on Key Coffee Trade Partners

Dear Representative [Last Name],

I am writing to urge immediate action to remove the tariffs recently imposed on essential U.S. trading partners as announced on April 2, 2025.

While trade equity is crucial, these tariffs are especially damaging to the global coffee industry, which relies heavily on trusted partnerships between growers, exporters, importers, roasters, and American consumers.

Given the unprecedented challenges already faced in 2024 and 2025, allowing these tariffs to persist will significantly harm the entire coffee supply chain and threaten the industry’s near and long-term sustainability.

As a [business owner/roaster/importer/consumer], I have directly experienced the consequences of these tariffs:

  • Increased import costs, making competitive operations increasingly difficult.
  • Supply chain disruptions, impacting reliable access to quality raw materials.
  • Higher costs for American consumers, who must now pay elevated prices for essential goods.
  • Risk of retaliatory tariffs, jeopardizing U.S. exports and further destabilizing trade.

By imposing these tariffs on longstanding allies and critical trade partners, we risk economic instability and weaken essential relationships supporting American businesses. Far from empowering domestic industry, these tariffs act as a hidden tax on consumers and businesses alike.

Therefore, I respectfully urge you to:

  1. Immediately repeal tariffs on key coffee trade partners, safeguarding continued access to essential everyday goods.
  2. Advocate for equitable and cooperative trade policies, avoiding punitive tariffs that negatively impact the American economy.
  3. Support legislation protecting the coffee industry, preventing economic disruption and job losses in our industry.

Thank you for your consideration of this critical matter. I look forward to your response and to learning about your efforts to repeal these harmful tariffs.

Sincerely,

[Your Name]
[Your Business/Organization (if applicable)]
[Your Contact Information]