As per a Reuters report, the National Coffee Association (NCA) is appealing to the Trump administration to exclude coffee from any tariffs. The NCA warns that the already – announced additional duties on Canada and Mexico could drive up coffee prices in the United States (US) by as much as 50%.
On February 1, 2025, President Donald Trump declared a 25% tariff on all imports from Mexico and Canada. The aim was to curb illegal immigration and the influx of fentanyl into the country. These tariffs are slated to come into effect on April 2.
In a letter, Bill Murray, the President and CEO of the NCA, informed US Trade Representative Jamieson Greer that, unlike other goods where tariffs might rectify unfair practices or encourage domestic production, there is no substitute for imported coffee.
The coffee industry is a vital part of the US economy, contributing around US$343 billion annually. Three – quarters of Americans are regular coffee consumers. Moreover, due to the integrated roasting, packaging, and trading operations across the US, Canada, and Mexico, these tariffs introduce uncertainty in the North American market.
Since most coffee varieties are not covered by the United States – Mexico – Canada Agreement (USMCA) free – trade deal, they will likely be hit with the extra duties when the tariff becomes effective.
The NCA has also requested the administration to avoid imposing tariffs on coffee – producing countries. It argues that such a move would have “even more significant consequences” given that the US is the world’s largest importer and consumer of coffee.
Reuters notes that traders have pointed to potential tariffs on South America as one of the factors behind the recent record – high coffee prices. In February, coffee prices in the wholesale market surged to over $4 per pound.
Related Topics：
- Subko Coffee Mumbai Wins Global Award for Sri Lankan Coffee Collaboration
- Sri Lanka’s Coffee Revival Recognized at Specialty Coffee Awards
- Hanbury Hall Café Nominated for Prestigious Regional Award
