We are one week away from August 1st, the day a new round of sweeping tariffs from the US government takes effect. Among the countries impacted are major coffee producers Vietnam, Indonesia, and Brazil, the latter of which is facing a 50% tariff on all goods coming into America. If they are enacted, the tariffs will significantly impact the global coffee trade, with a broadscale reshuffling of which countries are buying from where.
Now, there’s a bi-partisan push to have coffee removed from any current or future tariffs in order to “protect American jobs and ensure the continued vitality of an industry that relies almost entirely on imports.”
In a letter to Ambassador Jamieson Greer, a US Trade Representative, Congressional Coffee Caucus co-chairs Jill Toduka (D, Hawaii) and William Timmons (R, South Carolina) are urging the government to reconsider their stance. Their argument is familiar to the one made by individuals in the coffee industry, noting that there is no viable alternative to importing. While coffee is produced in Hawaii, small sections of California, and Puerto Rico, their combined output would account for less than 1% of annual domestic consumption.
Thus the ability to import coffee is vital, which tariffs between 25% and 50% would stymie. From the letter:
Coffee is more than a daily ritual for millions of Americans – it is a vital pillar of our economy and local communities. Nationally, the coffee industry supports more than 2.2 million American jobs, generates over $100 billion in wages, and contributes an estimated $343 billion in economic output per year. Every $1 of imported coffee creates an estimated $43 in value throughout the supply chain, and coffee shops, roasters, and distributors serve as important economic engines supporting small businesses and creating jobs that help sustain local economies.
The letter also hits on a particular contentious issue for the current administration: China. They note that America is currently Latin America’s leading trade partner, with China’s surging interest in coffee over the last decade making them a close second. The tariffs would alter where the United States buys their coffee, which could allow China’s strategic presence in the area to eclipse America’s.
The letter was signed by a 12 of the 31 members of the Congressional Coffee Caucus, split evenly between Democrats and Republicans. They are urging the government to reconsider their position and remove the tariffs on coffee, that would only work to harm American businesses—most of them small businesses—and the consumer.
The full letter can be found here.
Zac Cadwalader is the managing editor at Sprudge Media Network and a staff writer based in Dallas. Read more Zac Cadwalader on Sprudge.
