Tariffs are fees paid by U.S. businesses on imported goods, such as coffee.
The chairs of the recently inaugurated United States Congressional Coffee Caucus issued a letter with bipartisan support to the head of the U.S. trade agency urging coffee to be exempted from current and future tariffs.
In the letter, U.S. Representatives Jill Tokuda (Democrat, Hawaii) and William Timmons (Republican, South Carolina) told United States Trade Representative Jamieson Greer, a Donald Trump appointee, that an exemption would protect American jobs and support the import-dependent coffee industry.
Tariffs are fees paid to the U.S. by importers in order to secure imports. Since the U.S. is more than 99% dependent on green coffee imports to support domestic demand, it is widely understood that tariffs on coffee will raise prices throughout the U.S. coffee industry among traders and roasters, with consumers ultimately affected by higher prices.
The letter to Ambassador Greer comes less than two weeks since Trump announced a 50% tariff on imports from Brazil — which supplies approximately 30% of the U.S. green coffee market — scheduled to take effect Aug. 1. New Trump tariffs are also expected to be applied to coffees from nearly every major coffee-exporting country.
“Unlike many other goods affected by recent tariffs, coffee is not produced at a scale within the United States that can meet domestic demand,” the letter to Greer stated. “Though small quantities of predominantly specialty coffee are grown in Hawaii and Puerto Rico, their combined production accounts for less than 1% of U.S. coffee consumption.”
To be clear, green coffee production in the U.S. cannot be scaled not because of lack of resources or industrial capacity, but because coffee requires specific tropical, high-elevation conditions in order to grow.
“Because there is no viable domestic substitute, tariffs on imported coffee create challenges for the industry,” the letter continues. “Sixty-six percent of American adults drink coffee every day, making it the most popular beverage in the country. But coffee is more than a daily ritual for millions of Americans — it is a vital pillar of our economy and local communities. Nationally, the coffee industry supports more than 2.2 million American jobs, generates over $100 billion in wages, and contributes an estimated $343 billion in economic output per year.”
Tokuda and Timmons were joined in the letter by: Representatives Suzanne Bonamici (Democrat, Oregon); Tim Burchett (Republican, Tennessee); Steve Cohen (Democrat, Tennessee); Maria Salazar (Republican, Florida); Sarah McBride (Democrat, Delaware); Scott Perry (Republican, Pennsylvania); Becca Balint (Democrat, Vermont); Pat Fallon (Republican, Texas); Josh Gottheimer (Democrat, New Jersey); and Ben Cline (Republican, Virginia).
A copy of the letter is available here.
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Nick Brown
Nick Brown is the editor of Daily Coffee News by Roast Magazine.
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