Coffee prices reach $8/lb due to tariffs!
America Desk, Jul 25 (EFE).- By Christian Sandoval
New tariffs imposed by United States President Donald Trump’s administration on coffee imports are shaking Latin America’s coffee industry, threatening key export economies like Brazil, Colombia, and Mexico just as US retail prices reach an 8-dollar-per-pound record. The measures, taking effect Aug. 1, aim to reshape trade ties but could destabilize the global coffee market.
Brazil, the world’s top coffee exporter, is set to be the most affected by the 50% tariff imposed on its shipments to the US.
In 2024, Brazil exported over 2 billion dollars in coffee, 16% of its total production, with the US absorbing about one-third of its output.
The Brazilian Coffee Industry Association (ABIC) warned of “extremely negative and significant” consequences across the supply chain, from small farmers to major exporters.
“This could remove us from the American market, Marcos Matos, head of the Brazilian Coffee Exporters Council (CECAFÉ), told EFE.
He added that Brazil is exploring the possibility of classifying coffee as a “non-substitutable natural resource” to gain tariff exemptions.
Although Brazil is expanding into Asian and Middle Eastern markets, Matos emphasized that the US remains irreplaceable: “Brazil is essential for global supply, and the US is essential for Brazil’s demand.”
Colombia and Mexico warn of export collapse
Colombia, the second-largest coffee supplier to the US, exported 1.5 billion dollars worth of coffee in 2024 and faces a 10% tariff.
The country is amid a record harvest of over 14 million bags between Mar. 2024 and Feb. 2025.
“If Colombia faces a higher tariff than other origins, we’ll be pushed out of the US market,” said Gustavo Gómez, director of the National Coffee Exporters Association (Asoexport). “It’s a 1.4 billion dollar market, we can’t replace that overnight.”
Mexico, ranked 10th globally in coffee production, could see a 30% tariff.
In 2024, it exported over 348 million dollars in coffee to the US, mainly from Chiapas, Oaxaca, and Veracruz.
Farmers fear domestic prices may fall if exporters pass the new costs onto local buyers.
“Our sector is barely recovering from a long drought,” said Ismael Gómez Coronel, head of the Confederation of Cooperatives Unidos para Estar Bien.
Specialty coffee exports—around 2 million bags per year—are particularly vulnerable, added Jorge Aguilar Reyna of the Mayan Organic Production Network.
Peru, Honduras, and Guatemala look elsewhere
Peru, facing a 10% tariff, exported nearly 3.9 million bags in 2024, 27% of them to the US, and plans to increase shipments by 8% in 2025/26.
The country is expanding into new markets like Chile, where exports jumped 90% in early 2025.
Honduras, which sold 430 million dollars in coffee to the US in 2024, may benefit from Brazil’s loss of market share.
“The new tariffs could immediately impact US consumers,” said Miguel Pon of the Honduran Coffee Exporters Association (ADECAFEH), noting higher prices at cafes and supermarkets.
Still, he sees a “window of opportunity” if Honduras moves quickly to position itself with high-quality, traceable beans.
Guatemala, also facing a 10% tariff, was the fifth-largest coffee exporter to the US in 2024, despite not being among the top 10 producers.
It sold 430 million dollars worth of coffee, according to UN data.
As Latin American countries rush to renegotiate trade terms before the Aug. 1 deadline, many are also turning toward Europe and Asia to reduce their dependence on the US market. EFE ame-cs-lnm/seo/dgp
