Will Coffee Get More Expensive? U.S. Industry Pushes Against New Tariffs

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U.S. Coffee Industry Asks Trump Administration to Exempt Product from Tariffs

The industry group stated that the sector contributes $343 billion annually to the U.S. economy and that three out of four Americans are regular coffee consumers.

According to Fedecafé and the National Coffee Association (NCA) of the U.S., this industry not only generates 2.2 million jobs in the country but also contributes $343 billion annually through activities such as transportation, storage, roasting, and retailing of coffee.

The National Coffee Association of the United States (NCA) has urged the Trump administration to exempt coffee from tariffs, warning that additional levies on Canada and Mexico could increase U.S. coffee prices by up to 50%.

In a letter obtained by Reuters, NCA President and CEO Bill Murray told U.S. Trade Representative Jamieson Greer that there is no domestic alternative to imported coffee, “unlike other cases where tariffs can address unfair trade practices or encourage local production.”

The NCA, which has more than 200 members—including importers, exporters, traders, brokers, roasters, and retailers—highlighted that the U.S. coffee industry is highly interconnected, with roasting, packaging, and distribution operations spanning the U.S., Canada, and Mexico. The additional tariffs imposed by Washington have created significant uncertainty.

Most types of coffee are not covered by the USMCA (United States-Mexico-Canada Agreement), meaning they would likely be subject to new U.S. tariffs as soon as the additional 25% duty takes effect.

The NCA also urged the administration not to impose tariffs on coffee-producing countries, stating that such measures would have “even more significant consequences.” The United States is the world’s largest importer and consumer of coffee.

Brazil is the largest coffee supplier to the U.S., followed by Colombia and other Central and South American countries. Talks between these nations and Washington are ongoing.

The potential imposition of tariffs on South America was one of the factors cited by traders that contributed to a recent record surge in coffee prices, which soared to over $4 per pound in the wholesale market in February.