US Commerce Secretary Signals Possible Tariff Exemption for Coffee

by

Editorial Policy

Published on

✉️ This story was featured in this week’s Coffee News Club
👋 Get the Coffee News Club newsletter in your inbox weekly—sign up.

With a 50% tariff on Brazilian imports set to take effect August 1, many in the coffee industry are scrambling to find ways to keep sourcing from the world’s largest coffee producer. However, the industry received good news on July 29 when U.S. Commerce Secretary Howard Lutnick hinted at the possibility that coffee may be exempt from tariffs. 

As Marcelo Teixeira reports, Lutnick told CNBC that President Trump “has agreed to set zero tariffs for those natural resources that are not grown in the U.S. in the trade deals he has closed.”

Lawmakers and the National Coffee Association have been lobbying for coffee to be exempt from tariffs, arguing that the U.S. coffee industry is 99% dependent on imports. Last week, members of the newly-formed Congressional Coffee Caucus wrote to the head of the U.S. trade agency, noting that “because there is no viable domestic substitute, tariffs on imported coffee create challenges for the industry.” 

Lutnick acknowledged this in his interview with CNBC. “If you grow something and we don’t grow it, that can come in for zero,” he said. “So if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff, because coffee and cocoa will be other examples of natural resources.”

However, the agreement would apply only to countries with newly negotiated trade deals with the U.S. That would include Indonesia, the world’s fourth-largest coffee producer—but not Brazil. Still, it is the first suggestion that coffee could receive a broader tariff exemption, though that won’t help importers and roasters with Brazilian shipments arriving before the details are resolved.

Read all about the possible tariff exemptions from Reuters here.

Share This Article
Avatar photo

Fionn Pooler

Fionn Pooler is a coffee roaster and freelance writer currently based in the Scottish Highlands who has worked in the specialty coffee industry for over a decade. Since 2016 he has written the Pourover, a newsletter and blog that uses interviews and critical analysis to explore coffee’s place in the wider, changing world (and also yell at corporations).

Join 7,000+ coffee pros and get top stories, deals, and other industry goodies in your inbox each week.

This field is for validation purposes and should be left unchanged.


Other Articles You May Like

Coffee News Club: Week of August 4th

Afraid of ordering from a barista? You’re not alone. Also: coffee’s possible tariff exemption, and a Philz buyout leaving some workers with nothing.
by Fionn Pooler | August 4, 2025

Starbucks CEO Made Over $95M in 2024. The Average Barista Made Less Than $15,000

Starbucks CEO Brian Niccol made over $95 million in 2024, 6,666 times more than the average barista.
by Fionn Pooler | July 30, 2025

Congressional Coffee Caucus Asks to Spare Coffee from Tariffs

Members of the Congressional Coffee Caucus wrote a letter requesting that coffee be exempt from current and future tariffs.
by Fionn Pooler | July 29, 2025

Coffee News Club: Week of July 28th

Starbucks’ CEO rakes in 6,666 more than what workers earn. Plus, tariffs won’t just hurt Americans, and Disneyland Starbucks workers walk off the job.
by Fionn Pooler | July 28, 2025