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PIRACICABA, São Paulo, Brazil – The additional tariff on Brazilian coffee shipments to the United States continues as a major concern for the sector, observes Cepea in its latest report. Differently from what was verified for other products, such as orange juice, coffee continues in the 50% tariff list.
Brazil is responsible for providing roughly 25% of the coffee imported by the US and is the major supplier of arabica coffee, which is the basis for the American roasting industry. Therefore, the 50% tariff has been concerning both coffee roasters in the United States and players in Brazil. Data from Cecafé indicate that 16.1% of the Brazilian coffee exported in 2024 was sent to the US.
The fact that coffee is still in the tariff list indicates that the decision has a strong geopolitical and business component, since the Brazilian product is not a risk for the industry in the US. Thus, the possibility of exemption continues open and subject to diplomatic negotiations.
In case the tariff continues, Brazil may look for alternatives to sell the product, such as China, which has recently allowed 183 Brazilian companies to export coffee. It is worth noting that Brazil shipped 939 thousand bags to China in 2024, 2.5 times more than in 2022, but 33% less than in 2023 – data from Cecafé.
Between June 30 and July 31, the CEPEA/ESALQ Index for the arabica coffee type 6, delivered to São Paulo city, dropped 1.2% (or 22.49 Reais per bag), closing at BRL 1,811.87 per 60-kg bag on July 31.
The CEPEA/ESALQ Index for the robusta coffee type 6, screen 13, Espírito Santo, moved down 6.9% (or 76.62 Reais/bag) from June 30 to July 31, to close at BRL 1,028.45 per 60-kg bag on July 31.
