STiR coffee and tea magazine

22 STiR coffee and tea | 2025 Quarter 2 Summer (Jun/jul/Aug) A By Emily McIntyre Brewing Tensions: The Global Impact of 2025 Tariffs on the Coffee Industry s dawn breaks over misty coffee farms from Colombia to Vietnam—where the future of the $460 billion global coffee industry takes root each day—a significant shift in global trade policy is reshaping the economics and politics of our morning cup. President Donald Trump's sweeping "Liberation Day" tariffs, an- nounced on April 2, have rippled through the complexity of the global coffee market, leaving players at every level—importers, roasters, producers, and consumers—adapt- ing to a landscape suddenly even more volatile than before. When attempting to assess the impact of these tariffs on coffee, an industry that spans continents, economic systems, and cultural traditions, we bump into the fun- damental challenge of perspective. Where you stand in the supply chain largely de- termines what you see: economic sov- ereignty or economic harm, necessary correction or needless disruption, oppor- tunity or crisis. As the US, the world's second-largest coffee importer (consuming $8.2 billion worth annually), implements a new tariff structure with a baseline 10% tax on all imports, and country-specific tariffs up to 46% on nations like Vietnam, we're witnessing a stress test of globalized supply chains that were already under enormous pressure. In announcing these measures, President Trump framed April 2 as "Liberation Day" and called it "our declaration of economic independence," positioning the policy as essential to strengthening American manufacturing, reducing trade deficits, and generating revenue for tax cuts. The Shifting Grounds of Trade For decades, coffee has entered the US tariff-free—a reflection of the country's near-total reliance on foreign production for a beverage that has become deeply woven into its cultural and economic fabric. Unlike industries like steel or au- tomobiles, coffee has limited domestic production potential, which creates a fundamentally different context for ap- plying tariffs. The new structure imposes a base- line 10% universal tariff on virtually all imports, with additional "reciprocal" tariffs targeted at specific countries. The impact on coffee-producing nations var- ies widely: Vietnam faces potential tariffs of 46%, Indonesia 32%, while Colombia and Brazil contend with 10%. Implemen- tation followed a two-tiered approach: a baseline 10% tariff took effect on April 5, followed by higher country-specific tar- iffs scheduled for April 9. However, on April 9, the administration announced a 90-day pause on these higher tariffs for most countries, maintaining only the 10% baseline. China remained a notable exception, facing much higher rates. De- velopments continue every day, spread- ing uncertainty through the markets. According to the White House fact sheet on the topic, these tariffs aim to How does the tangled web of trade policy affect US coffee businesses? The impact on coffee-producing nations varies widely: Vietnam faces potential tariffs of 46%, Indonesia 32%, while Colombia and Brazil contend with 10%. New US Tariff Rates for Major Coffee Producing and Exporting Countries Vietnam Myanmar Thailand China Indonesia Switzerland India Malaysia European Union Nicaragua Nigeria Democratic Brazil Colombia Peru Costa Rica Ecuador Guatemala Honduras El Salvador 46% 44% 36% 34% 32% 31% 27% 24% 20% 18% 14% 11% 10% 10% 10% 10% 10% 10% 10% 10% 0% 10% 20% 30% 40% 50%

• Cover