NCA Calls for Reevaluation of Coffee Tariffs Amid Rising Prices

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The National Coffee Association urgently calls for the exemption of trade tariffs that threaten to escalate coffee prices across the United States.

Key Takeaways

  • The Trump administration plans a 25% tariff on Mexican and Canadian imports starting April 2025.
  • New tariffs could raise US coffee prices by up to 50%.
  • The coffee industry significantly contributes to the US economy, valued at $343 billion annually.
  • The NCA stresses the lack of domestic alternatives to imported coffee.
  • Climate impacts and geopolitical tensions are contributing to rising coffee prices worldwide.

Tariffs Threaten Coffee Prices

The National Coffee Association (NCA) is making headlines by advocating against new tariffs from the Trump administration aimed at Canadian and Mexican imports. These tariffs, set at 25%, are intended to curb illegal immigration and fentanyl trafficking. However, they pose a significant risk to the coffee industry, which relies heavily on foreign imports. The NCA highlights the vital role coffee plays in the US economy, being the world’s largest importer of coffee. Experts fear that the new tariffs could increase US coffee prices by as much as 50%.

Coffee roasters in America are already grappling with rising costs due to global supply chain disruptions. In February 2025, the average price of ground roast coffee reached a historic high of $7.25 per pound, with wholesale arabica coffee prices soaring to $4.30 per pound. Analysts attribute these increases to geopolitical tensions, climatic effects on crops in countries like Brazil and Vietnam, and decreased coffee exports from Asia and Oceania. Additionally, China’s rising coffee consumption may pose further strains on the supply chain, pushing prices higher still.

Economic Implications and NCA’s Stance

NCA President Bill Murray emphasizes the lack of domestic alternatives to imported coffee, stressing the industry’s dependence on foreign supplies. The tariffs create uncertainty in the interconnected North American market, as most coffee types lie outside the USMCA agreement and are thus subject to new trade fees. The NCA warns that imposing tariffs on countries that produce coffee may only exacerbate the rising prices. Additionally, they highlight the coffee industry’s significant $343 billion contribution to the nation’s economy.

The NCA’s call for exempting coffee from the impending tariffs resonates with many stakeholders nationwide, including companies managing costs and pricing to keep consumer affordability in mind. With 75% of Americans being regular coffee drinkers, the stakes are high, and the NCA’s advocacy goals are clear: prevent a further surge in coffee prices and maintain stable pricing dynamics.

A Global Perspective on Coffee Supply and Demand

The potential impact of proposed tariffs serves as a reminder of the delicate balance in international trade and how policy changes affect staple commodities like coffee. Global events like adverse weather conditions and transportation delays, combined with geopolitical tensions, have already disrupted coffee supply chains. The situation underscores the need for robust trade agreements and responsive policies to maintain market stability. Coffee, a daily essential for millions, exemplifies how interconnected economies depend on careful management and cooperation to meet consumer needs.

The NCA’s advocacy is aligned with that responsibility as it campaigns not just for industry players but for the caffeine-consuming public whose daily routines hinge on affordable, quality coffee.

Sources:

  1. US coffee drinkers can expect rising prices as perfect storm of factors impact global supply chains
  2. US coffee industry asks Trump administration to exempt product from tariffs
  3. National Coffee Association calls for coffee exemption from tariffs

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