Coffee industry participants in North America are seeking clarity regarding the impact of the trade war initiated by the U.S. administration on their interconnected businesses throughout the region.
With operations spanning the United States and Canada for roasting, packaging, and trading to better serve clients, companies now face the need to consider potential U.S. tariffs and retaliatory measures when making production decisions.
Mexico is a crucial supplier of high-quality green coffee to the U.S. and Canada, as well as an instant coffee exporter to both countries.
Regarding the situation, the CEO of a major regional coffee company, requesting anonymity due to the issue's sensitivity, mentioned the cross-border operations for roasting and retail supply within the U.S. and Canada.
For instance, Starbucks roasts coffee for its Canadian stores in the U.S., adapting strategies based on evolving political and tariff environments.
While the majority of goods from Canada and Mexico seem to be exempt from tariffs, many coffee traders are amending contracts to accommodate potential tariff implications.
Furthermore, there is concern within the industry about possible U.S. tariffs on South American countries, including Brazil, a key player in the global coffee market.
Brazil's Vice President and the U.S. Secretary of Commerce recently initiated consultations concerning trade policies, reflecting the industry's apprehension about potential future impacts on coffee trade.