U.S. Legislators Introducing Bipartisan Bill to Exempt Coffee from Tariffs

"Amid soaring prices for coffee at U.S. grocery stores, legislators are planning to introduce a bipartisan bill to exempt coffee from recently imposed U.S. tariffs, which are fees paid by U.S. importers. The Washington Post was first to report (paywall) that Reps. Don Bacon (R-Neb.) and Ro Khanna (D-Calif.) intend to file legislation exempting coffee - including green coffee, roasted coffee and coffee byproducts such as husks - from any tariffs imposed after Jan. 19, 2025."

"The move follows recent Bureau of Labor Statistics data showing that coffee prices in August posted the fastest monthly increase since 1997. While coffee prices on the commodity markets have been historically high for most of the year, analysts attribute the current higher consumer prices to President Donald Trump's tariffs, including a 50% tariff paid by U.S. importers on goods from Brazil, the leading supplier of coffee to the U.S."

"In a post on X today, Bacon wrote, "It doesn't make sense to put tariffs on something our country does not even grow. All it does is raise the cost of coffee for American consumers." On Instagram, Khanna wrote, "I will be introducing bipartisan legislation to repeal tariffs on coffee. Anyone who has a coffee cup always in hand hates this tax!" The move follows a June letter from the bipartisan Congressional Coffee Caucus urging the U.S. Trade Representative to spare coffee from tariff actions,"

Lawmakers plan bipartisan legislation to exempt green coffee, roasted coffee and coffee byproducts from U.S. tariffs imposed after Jan. 19, 2025. Coffee prices registered the fastest monthly increase since 1997 in August, according to Bureau of Labor Statistics data. Analysts link higher consumer prices to recent tariffs, including a 50% tariff on goods from Brazil, the U.S. coffee supplier. Congressional members warn there is no scalable domestic substitute, noting Hawaii and Puerto Rico produce less than 1% of U.S. consumption. Coffees from nine of the top ten producing countries currently face various tariff rates.

Read at Daily Coffee News by Roast Magazine