A bipartisan coalition of US lawmakers has put forward a bill to abolish coffee tariffs established under President Donald Trump’s administration.
The ‘No Coffee Tax Act’ looks to remove US tariffs on coffee and bring them back to the level they were prior to the President entering office, which was 0% on all coffee goods besides coffee substitutes that contain coffee.
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The proposed legislation would exempt coffee from tariffs imposed after 19 January 2025, covering roasted and decaffeinated coffee, coffee husks, skins, and coffee substitutes containing any proportion of coffee.
According to the latest Consumer Price Index, retail coffee prices in the US surged by nearly 21% in August compared to the previous year, marking the largest annual increase since October 1997.
The US, which is the world’s largest coffee importer, relies on imports for over 99% of its coffee consumption, as suitable growing conditions are limited, according to the National Coffee Association.
Brazil, the primary supplier of US coffee, currently faces a 50% tariff under the Trump administration’s tariff policy. At the end of July, the President signed an executive order to impose an additional 40% tariff on top of a blanket 10% duty for imported goods.
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By GlobalDataThe latest bill has been introduced by US representatives Don Bacon and Ro Khanna, with support from representatives Don Beyer and Maggie Goodlander.
In a statement, Bacon said: “Families across America are feeling the cost of higher coffee prices, which are already up 21%, and tariffing a product we can’t grow at a large, commercial scale, only makes it worse.
“Tariffs are simply a tax on American consumers, raising the price of everyday goods without creating jobs or bringing production on-shore. Article One of the Constitution makes clear that Congress has the authority to set tariffs, and this legislation begins to reclaim that authority.”
“Our bipartisan bill is simple: it removes Trump’s tariffs on coffee to bring down costs,” added Khanna.
Earlier this month, Trump enacted an executive order that includes exemptions for imports including cocoa and coffee from existing US tariffs.
The order changes the tariffs for “aligned partners” that have established trade agreements with the US and recognises that certain goods cannot be sufficiently produced or sourced domestically, the White House said.
The exemptions will be contingent on factors such as “the scope and economic value” of a trading partner’s commitments to the US under reciprocal trade agreements and the “national interests” of the country, according to the order signed earlier this month.
