Brazil’s instant coffee industry seeks dialogue over new U.S. tariff proposal

A proposed new 25% tariff on Brazilian products in the United States has created tension in Brazil’s instant coffee industry. As of Tuesday (June 2), the segment had expected to be included on the U.S. government’s list of exemptions, but that did not happen.

Unlike other coffee categories, such as green coffee and roasted and ground coffee, Brazilian instant coffee already faced a 10% tariff when entering the U.S. market. Under the proposal from the Office of the United States Trade Representative, or USTR, that rate would rise to 35%, raising concerns in the Brazilian industry.

“We are tense. We understand that the U.S. government wants an agreement with Brazil, which depends talks being held,” said Aguinaldo José de Lima, executive director of the Brazilian Instant Coffee Industry Association, or Abics.

Lima said that, at least for now, the association does not have a response plan to the new measure proposed by the Donald Trump administration. The strategy will still depend on discussions between the private sector and the Brazilian government.

He noted, however, that communication channels with U.S. authorities are more open than in previous periods.

“Before, it was very difficult. Now, there is room to negotiating a way out. We can submit comments to the hearings,” he said.

The White House proposed the new tariff as a result of a trade investigation into Brazil under Section 301 of the Trade Act. U.S. authorities are expected to decide on the new tariff by July 6.

In a statement, the Brazilian Specialty Coffee Association, or BSCA, expressed concern over the USTR proposal and underscored the potential consequences for the instant coffee industry.

The association said trade restrictions could have negative consequences for Brazil’s entire coffee production chain. It also pledged to remain in contact with U.S. authorities to provide the necessary clarifications to ensure all types of Brazilian coffee to be exempted from tariffs.

“The proposal presented by the USTR is part of an ongoing regulatory process and does not represent a final decision by the U.S. government. BSCA reiterates its commitment to defending fair trade conditions for all Brazilian coffees,” the statement said.

Container export data obtained and processed by Datamar shows that Brazil shipped 586 TEUs of soluble coffee to the United States between January and April 2026, down 41%. The chart below highlights the downward trend in these exports:

Soluble Coffee Exports | Jan-Apr | 2023 – 2026 | TEUs

Source: DataLiner (click here to request a demo)

An exemption for Brazilian instant coffee has support from the U.S. industry. In May, during the International Coffee Seminar in Santos, São Paulo, Bill Murray, president of the National Coffee Association, said there were arguments for including the product among the tariff exemptions.

He noted that instant coffee is important for consumers and for the U.S. ready-to-drink beverage industry, which uses it as an input in several formulations.

“Many people consume instant coffee and are concerned about the economic situation. It is very clear that we need an exemption,” he said at the time, during the event.

Source: Globo Rural

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