Following the Trump Administration’s tariff announcement on Wednesday, we wanted to share our current understanding of how these changes will impact our clients. As we have seen in recent months, policies can shift quickly, so this is very much a “what we know right now” assessment and more details will follow as we get more specifics on implementation.
What We Know
A 10% baseline tariff will apply to all imports. However, some countries will face significantly higher rates, as shown in the table below. We’ve edited the list to coffee origins that we currently import from.
As we understand it, the pause on the 25% tariffs from Mexico and Canada remains in effect; however, if coffee from Colombia, for example, is decaffeinated in Canada or Mexico and then imported into the U.S., the tariff for the coffee’s country of origin will still apply.
What this Means for You
While it may take a few days for the tariffs to be enforced, coffee and other commodity prices are based on replacement. For this reason, you will see that reflected in our offer list pricing immediately. If you are a full-container buyer with unshipped coffee, we will contact you directly in coming days about the impacts to your contracts under GCA Terms.
This news is as disappointing to us as it is to you, and we know that high market prices have already put financial stress on your business. However, we have no option but to include the additional costs in our prices for as long as they remain in effect.
What You Can Do
We are actively working to find any relief available and will continue to keep you updated. We also strongly encourage you to call your representatives and let them know how these tariffs are impacting your business. Additionally, the National Coffee Association is doing great work lobbying for coffee to be exempted — since it cannot be produced at scale domestically — and we encourage you to consider becoming a member and supporting our industry’s trade organization.
We truly value your partnership and are here to answer any questions.