U.S. importers freeze Brazilian coffee purchases after tariff hike

With the new 50% U.S. tariff on Brazilian products now in effect, American importers have frozen coffee trade negotiations with Brazil and are postponing previously agreed shipments — a development that could be extremely harmful to the sector, according to the Brazilian Coffee Exporters Council (Cecafé).

The United States led Brazil’s coffee imports in the first seven months of 2025, purchasing 3.713 million 60-kg bags, accounting for 16.8% of total shipments during the period. Márcio Ferreira, president of Cecafé, noted that sales proceeded normally through July, since the new tariff only took effect on August 6.

Check below a history of Brazilian green coffee exports to the United States from January 2022.
The chart was prepared using DataLiner data:

Brazilian Green Coffee Exports to the United States | Jan 2022 to Jun 2025 | TEU

Source: DataLiner (Click here to request a demo)

“From this point forward, U.S. roasters are adopting a wait-and-see approach, as they have inventory that can last 30 to 60 days. This gives them some breathing room to delay ongoing negotiations. However, what we’re already seeing are requests to postpone shipments, which are extremely damaging to the sector,” Ferreira said in a statement on Tuesday (Aug 12).

Ferreira explained that when an exporter finalizes a sale, it also secures a foreign exchange contract advance (ACC), a pre-shipment financing tool that provides companies with upfront capital based on their FX contract.

“When deals with the U.S. are postponed, the ACC can no longer be fulfilled, and we suffer the consequences: higher interest rates, added financial burdens, and extra operational expenses,” he stressed.

Another negative effect comes from the behavior of coffee prices in the futures market. The further out the contract maturity date, the lower the prices.

“For instance, the December 2026 contract on the New York Stock Exchange is trading at a 9% to 10% discount compared to Dec/25. And December 25 is already priced about $10 per bag lower than September 25. So, postponing an August shipment — originally pegged to Sep/25 — to a later date like Dec/25, means an additional $10 loss per bag, on top of interest from the ACC and storage and logistics costs,” Ferreira explained.

“In short, delaying shipments not only delays foreign currency inflows and financial commitments, but also leads to compounded losses,” he added.

Negotiations

Coffee was not included in the list of exceptions to the U.S. tariff hike and was therefore subject to the full 50% rate. Cecafé is now working to have Brazilian coffee added to the exemption list, engaging with the Brazilian government, U.S. industry peers, and other stakeholders in the United States.

The argument is that coffee is not grown at scale in the U.S., yet it plays a vital role in the American economy, and there is a relationship of interdependence between the two countries. Brazil is the world’s largest producer and exporter, and the top supplier to the U.S. Meanwhile, the U.S. is the world’s top importer and consumer of coffee, as well as the leading buyer of Brazilian beans.

Given the inevitable losses resulting from the U.S. tariffs, Cecafé has also been holding talks with Brazil’s federal government and state administrations about the need for “temporarily compensatory measures” to support the sector.

Bilateral agreements

In partnership with the Brazilian Soluble Coffee Industry Association (Abics), Cecafé has requested that the federal government intensify efforts with other coffee-buying countries to secure bilateral trade agreements based on reciprocity — so that Brazilian soluble coffee can enjoy the same duty-free access already granted to competing origins.

Regarding China’s recent accreditation of 183 new Brazilian coffee exporters, Ferreira noted that many of these companies were already operating in the Chinese market, and that this move does not necessarily signal an immediate rise in shipments.

“This five-year accreditation, as reported in the media, is positive from a red tape reduction standpoint, but it doesn’t automatically translate into more exports to China. We expect growth to continue gradually, as we’ve seen in other Asian markets, driven by rising consumer interest,” Ferreira said.

So far, China is seen as a promising growth market. From January to July, the country imported 571,866 bags of Brazilian coffee, making it the 11th largest destination for Brazilian coffee exports in 2025.

Source: Globo Rural

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