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US Lifts 25% Tariff on Brazilian Instant Coffee, Securing Billions in Trade

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Jul 16, 20261 min read
US Lifts 25% Tariff on Brazilian Instant Coffee, Securing Billions in Trade

Summary

The exemption removes a significant trade barrier that had caused Brazilian exports to the U.S. to fall by nearly 30% last year, protecting up to $2.5 billion in annual trade.

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Background

The United States has exempted Brazilian instant coffee from a 25% import tariff, a significant policy reversal that provides relief to a key segment of Brazil's coffee industry. The move secures between $2 billion and $2.5 billion in annual exports to the U.S., according to the Brazilian coffee exporters group Cecafe.

Impact on Trade

The U.S. duties had a tangible negative effect on the sector. The Brazilian Instant Coffee Industry Association (Abics) reported that exports to the United States fell by nearly 30% in 2025 compared to the previous year as producers struggled with the tariff's impact on competitiveness.

This exemption is expected to allow Brazilian producers to reclaim lost market share and stabilize a critical trade relationship. For U.S. coffee companies and consumers, it could lead to a more consistent supply and potentially more stable pricing for instant coffee products sourced from the world's largest coffee producer.

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Context of the Tariffs

The tariff on instant coffee was a holdover from a previous U.S. administration's trade policy. It was a notable exception, as duties on most other Brazilian products, including green coffee beans and even flavored varieties of instant coffee, had been revoked last year.

This left standard instant coffee as the only segment of Brazil's coffee sector subject to the U.S. duties. According to Cecafe's director general, Marcos Matos, the successful removal of the tariff was the result of collaborative efforts between Cecafe and the U.S. National Coffee Association.

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