US Coffee Buyers Shun Brazilian Beans Amid 50% Tariffs

US coffee buyers are shunning fresh deals with Brazil after Trump's 50% tariff took effect. American companies are avoiding new contracts and seeking wiggle room in existing ones to avoid higher levies. Brazil is the US' top source of unroasted coffee, with about a third of American imports coming from the country. Roasters are looking for alternative origins, such as Central America, Peru, and Mexico, to replace Brazilian coffee.

American coffee buyers are shunning fresh deals with Brazil following President Donald Trump's 50% tariff, which took effect this month. Companies are avoiding new contracts and seeking wiggle room in existing ones to avoid the higher levies. Brazil, the US' top source of unroasted coffee, accounts for about a third of American imports. Roasters are looking for alternative origins, such as Central America, Peru, and Mexico, to replace Brazilian coffee.

The tariffs, imposed due to political tensions between the US and Brazil, have led to a significant slowdown in trade between the two countries. According to a dozen brokers, roasters, and exporters contacted by Bloomberg, deals between the US and Brazil have "totally stalled," with no new purchases being made [2].

Brazil is the world's top exporter of arabica, which is considered smoother than robusta and is the only bean used by coffeehouse chain Starbucks Corp. The country's dominant share makes its beans nearly irreplaceable, with few alternative origins able to match its volumes [2].

Roasters are reluctant to change longstanding blends due to the potential short-term nature of the policy changes. They may also not want to alter the profile of the blends customers are accustomed to. Even so, coffee trade between the US and Brazil may continue to slow, in line with a trend seen so far this year [2].

Starbucks, the ubiquitous coffee behemoth, has pledged not to raise prices at company-owned coffee houses in North America through fiscal year 2025. The company sources coffee from more than 450,000 farmers in 30 countries and "has a long history of successfully navigating global changes" [1].

References:
[1] https://www.washingtontimes.com/news/2025/aug/15/coffee-industry-braces-impact-brazil-tariffs-cause-concern/
[2] https://www.bloomberg.com/news/articles/2025-08-19/us-roasters-shun-brazil-coffee-after-50-tariffs-kick-in