50% Tariff Proposal Raises Concerns Among Small Roasters and Consumers
A new trade measure proposed by former President Donald Trump to implement a 50% tariff on all imports from Brazil is stirring anxiety within the U.S. coffee sector. As Brazil supplies nearly 30% of coffee imported into the country, this policy could have far-reaching consequences.
Small roasters like Jeff Yerxa of Lost Sock Roasters in Washington, D.C., report increasing uncertainty about operational costs and pricing strategies. While the tariffs are not expected to take effect until August 1, industry professionals are already preparing for potential disruptions.
Higher Costs Likely to Be Passed to Consumers
Many coffee businesses operate on thin profit margins, and any significant increase in raw coffee prices would likely be reflected in higher prices for consumers. Tariff impacts are not limited to Brazil; additional levies have been announced on imports from major coffee-producing countries such as Vietnam, Colombia, Ethiopia, and Indonesia.
Yerxa and other roasters emphasize that these changes may force companies to reevaluate sourcing strategies, although shifting away from longstanding suppliers is not a simple solution.
Supply Chain Pressures and Long-Term Considerations
Importing coffee involves complex logistics, long-term contracts, and close coordination with producers. Tariffs would be charged to importers first, but these added costs would ultimately affect wholesale and retail prices.
While businesses may rely on existing inventories in the short term, consumers could begin to notice price increases within weeks or months. Experts note that if the tariffs become permanent, companies may be compelled to adjust their blend compositions or absorb the costs, affecting their competitiveness.
In the long run, the policy could reshape how the U.S. coffee industry sources its products, with implications for businesses, consumers, and international partners alike.
