According to a Reuters report, the National Coffee Association (NCA) is calling for the Trump administration to exempt coffee from any tariffs, saying the already adopted additional duties on Canada and Mexico could increase United States (US) prices by up to 50 per cent.
On 1 February 2025, President Donald Trump announced a 25 per cent tariff on all Mexican and Canadian imports in an attempt to halt illegal immigration and the entry of fentanyl into the country. The tariffs are set to take effect from 2 April.
In a letter, NCA President and CEO Bill Murray told US Trade Representative Jamieson Greer there is no alternative to imported coffee, “unlike other cases where tariffs may address unfair practices or incentivise domestic producers”.
The coffee sector is a major constituent of the US economy, contributing approximately US$343 billion each year, with three in four Americans being regular coffee drinkers.
Additionally, the tariffs create uncertainty in the North American market due to the interconnected nature of roasting, packaging, and trading operations across the US, Canada, and Mexico.
Since most types of coffee are excluded from the The United States-Mexico-Canada Agreement (USMCA) free trade agreement, they would likely be subject to the extra duties when the tariff goes into effect.
The NCA also asked the administration to refrain from imposing any tariffs on countries that produce coffee, saying that would have “even more significant consequences”, since the US is the world’s largest importer and consumer of the beverage.
Reuters says traders have cited potential tariffs on South America as one factor contributing to the recent record on coffee prices, which rose to more than $4 per pound in the wholesale market in February.
