The National Coffee Association of the United States has urged the Trump administration to exempt coffee from tariffs, as additional duties on Canada and Mexico could potentially raise U.S. prices by up to 50%. In a letter to U.S. Trade Representative Jamieson Greer, NCA President and CEO Bill Murray emphasized the essential reliance on imported coffee, contrasting it with other situations where tariffs might aim to correct unfair practices or promote domestic production.
With a membership exceeding 200, the NCA represents various sectors including importers, exporters, traders, brokers, roasters, and retailers. The association highlights the coffee industry's substantial contribution of $343 billion annually to the U.S. economy, noting that three out of four Americans regularly consume coffee.
Given the interconnected nature of the North American coffee industry, spanning operations in the U.S., Canada, and Mexico, the recent U.S. tariffs have presented challenges. As most types of coffee are not covered by the USMCA free trade agreement among the three countries, they could immediately face additional duties upon implementation.
Additionally, the NCA urged against imposing tariffs on coffee-producing countries, citing potentially significant repercussions. The U.S. stands as the leading global importer and consumer of coffee, predominantly sourcing from Brazil, Colombia, and other Central and South American nations. Ongoing discussions are being held between these nations and the U.S. administration.
Traders attribute the recent surge in coffee prices, exceeding $4 per pound in the wholesale market in February, partially to concerns about potential tariffs on South American coffee.