Brazil’s specialty coffee exports to U.S. plunge after tariff hike

Brazilian exports of specialty coffee to the United States collapsed in August, following the entry into force of the 50% tariff imposed by Donald Trump’s administration on the product. According to data from the Brazilian Coffee Exporters Council (Cecafé), Brazil shipped 21,679 bags of these differentiated coffees to the U.S. last month, representing a sharp drop of 79.5% compared to August 2024 and 69.6% against July this year.

“Many contracts that had been signed are being suspended, canceled, or postponed at the request of American importers, since the 50% tax on Brazilian specialty coffees makes these deals practically unviable, given the extremely high prices. This explains the significant decline in export performance to the United States,” said Carmem Lucia Chaves de Brito, known as Ucha, president of the Brazilian Specialty Coffee Association (BSCA).

The U.S. had led the monthly rankings this year as the top importer of Brazilian specialty coffees up until August, and remains the largest destination for the product on a year-to-date basis. However, in August, the U.S. fell to sixth place, behind the Netherlands (62,004 bags), Germany (50,463), Belgium (46,931), Italy (39,905), and Sweden (29,313).

“The impact is brutal! If the tariff remains in place, the trend is for the U.S. to further reduce imports of Brazilian specialty coffees and even lose its position as the leading partner for the product over the course of the year. The shipments still being counted were contracted in previous months and can still be delivered to the U.S., subject to the ‘smaller’ 10% tariff announced in April, until October 5,” Ucha explained.

According to her, the tariff’s impact will not only affect Brazilian producers, exporters, and other links in the supply chain, but also American consumers.

“We are already seeing higher coffee prices for the U.S. population, adding to inflation in the country’s economy. It is unfortunate, as it affects the world’s largest consumer market, which is also Brazil’s main partner for coffee. It threatens to undermine part of a mature and consolidated structure that was built at high cost and effort by stakeholders in the coffee industries of Brazil and the U.S. We have worked intensely to establish this supply chain, and under these conditions we will face major new costs and challenges to return to previous export levels,” she said.

In view of this scenario, the BSCA president stressed that it is vital for the Brazilian government to engage with the Trump administration, especially after the executive order signed by the U.S. president on September 5. That order stated that reciprocal tariffs on strategic imports could be reduced to zero, provided the exporting country has firm commitments under trade agreements with the U.S. and that the measure serves American interests and declared emergencies.

“It is crucial for us, as the private sector represented by all industry associations, to keep discussions open with industrial partners and importers in the U.S. and with the U.S. State Department. At the same time, the Brazilian government must genuinely open negotiations with the Trump administration to find a solution, through dialogue, to reestablish fair coffee trade flows between Brazil and the U.S.,” Ucha urged.

She added that the BSCA sees the best solution as the inclusion of coffee on the tariff exemption list. “To that end, we remain at the government’s disposal to support negotiations with U.S. counterparts in both the public and private sectors,” she concluded.

Source: SBA – Canal do Boi

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