Hawaiian coffee farmers warn Trump's proposed 50% tariffs on Brazilian coffee could backfire on U.S. growers

Hawaiian coffee farmers warn Trump's proposed 50% tariffs on Brazilian coffee could backfire on U.S. growers

Title: Hawaiian Coffee Farmers Warn Trump's Proposed 50% Tariffs on Brazilian Coffee Could Backfire on U.S. Growers

July 02, 2025

Hawaiian coffee farmers have expressed concerns that President Donald Trump's proposed 50% tariffs on Brazilian coffee could ultimately harm U.S. growers rather than benefit them. While the tariffs aim to protect domestic producers, Hawaiian farmers argue that higher prices for imported coffee will reduce demand for their products, leading to a potential decline in sales and profitability.

Brazil is the world's largest coffee producer, and approximately 30% of the U.S. green coffee supply comes from Brazil [1]. The U.S. imported the equivalent of 726,000 60-kilo bags of Indonesian coffee in the 2024/25 year [1]. Hawaiian coffee farmers, who produce a mere 12,040 tons of coffee cherries in the 2024-2025 season, fear that increased prices for imported coffee will make their products less competitive [1].

Suzanne Shriner, the vice president of the Kona Coffee Farmers Association and the president of Lions Gate Farms, stated that tariffs on Brazilian coffee will likely hurt Hawaiian farmers as much as it would hurt mainland roasters. She noted that higher prices across the board will hit consumers already struggling with inflation, potentially curbing demand for both everyday roasts and luxury Kona beans [2].

The U.S. imported more than 450,000 tons of unroasted coffee from Brazil in 2024, valued at nearly $2 billion, according to the US Department of Agriculture [2]. If the proposed tariffs are implemented, the cost of coffee could increase significantly, with consumers potentially switching to cheaper alternatives like energy drinks. This could lead to a decrease in overall coffee consumption, which would negatively impact Hawaiian farmers.

Adam Potter, who owns or manages about 18,000 cocoa trees on the Big Island and farms another 3,000 coffee trees, echoed Shriner's concerns. He noted that if consumers decide that their "affordable luxury" isn't cost-effective anymore, they will likely reduce their consumption of Hawaiian coffee as well [2].

Economists and consumers have been bracing for higher prices stemming from Trump's tariff campaign. So far, the impact has been relatively muted, though June’s consumer price index showed some companies starting to pass on higher import costs [2]. Hawaiian coffee farmers received about $21.90 per pound for green coffee in the 2024-2025 marketing year, according to the USDA [2]. By the time that makes it to consumers, the best quality beans can cost even more. A pound of roasted coffee from Ka’awaloa Trail Farm in Big Island’s famed Kona coffee-growing region retails for $60. Even at a current record high in data going back to 1980, a pound of ground roast coffee in the US averaged just over $8 a pound [2].

Hawaiian farmers don’t see much room to expand production significantly, constrained by land, labor, and climate. However, demand has plenty of space to drop, especially if consumers decide that their “affordable luxury” isn’t cost-effective anymore [2].

The proposed tariffs, if implemented, could have a significant impact on the coffee industry, potentially leading to higher prices for consumers and decreased demand for Hawaiian coffee. The Hawaiian coffee industry, which relies heavily on tourism, could face further challenges if consumers decide that their morning cup of joe is too expensive.

References:
[1] https://dailycoffeenews.com/2025/07/16/coffee-tariff-updates-on-brazil-indonesia-and-china/
[2] https://financialpost.com/pmn/business-pmn/trump-tariffs-spell-trouble-for-hawaiis-few-coffee-farmers