Trump’s Tariffs Threaten to Drive Up Coffee Prices

A new price surge is expected due to tariffs announced by Trump on April 2, 2025, affecting all imports, including coffee—a first since colonial times, according to Reuters. On Wednesday (April 2, 2025), the U.S. imposed a 46% tariff on imports from Vietnam, the world’s second-largest coffee producer, and a 32% tariff on imports from Indonesia, the fourth-largest producer. Producers in Central and South America, such as Brazil and Colombia, received a 10% tariff. Vietnam is the third-largest coffee supplier to the U.S., the largest global consumer of the beverage. It primarily exports robusta coffee, widely used for instant coffee and ready-to-drink chilled beverages. ‘Vietnam stands out,’ said Tomas Araujo, an analyst at StoneX. ‘Future supply chains and end users will face additional costs.’ A European trader noted that the Vietnam tariff adds $2,500 per ton for U.S. buyers. ICE robusta futures contracts traded around $5,390 per ton on Thursday (April 3, 2025). Cocoa-exporting countries are also taxed; Ivory Coast, the top producer, faces a 21% tariff. ‘Both the coffee industry and candy manufacturers will push hard to remove these tariffs,’ said Judith Ganes, president of J Ganes Consulting. Experts suggest American roasters may shift from Vietnamese robusta to Brazilian conilons, though Brazil mainly produces milder arabica coffee. The U.S. will compete with Brazil’s local industry for supplies, while Europe and China might secure better deals with Vietnam.