Petition to exempt coffee from tariffs reaches over 13,000 signatures –  but will it happen?

Perfect Daily Grind – June 12 2025

The coffee industry is fighting for an exemption from tariffs, but political volatility stands in the way of success.

In early April 2025, the US government announced a 10% universal tariff on all imported goods, including coffee. Higher rates for specific countries, including major coffee-producing nations, remain on hold. Vietnam may face a 46% levy, while Indonesia could be hit with a 32% import tariff, for example.

Even at the lower rates of 10%, tariffs have exacerbated already high coffee prices. In response, New York roaster Coffee Bros launched a petition to safeguard coffee supply chains and protect small businesses and the millions of producers they rely on. The petition has garnered over 13,000 signatures to date, underscoring widespread concerns about how tariffs could impose financial strain and compromise coffee quality.

But political tension and instability could dismantle these efforts. Erratic decision-making and swift U-turns mean it’s difficult to know whether the Trump administration will exempt coffee from tariffs.

I spoke with Dann Hunnewell at Coffee Bros to find out more.

Why tariffs spell bad news for coffee

On 2 April 2025, US President Donald Trump announced universal tariffs on all goods imported into the country. This included new levies ranging from 10% to 104% on imports from the majority of the world’s top 20 coffee-producing countries.

The US administration asserted that this decision would boost US manufacturing and protect national job security. While this could be true for the automobile and pharmaceutical industries, for instance, import taxes pose a risk to both the US and global coffee industries.

Outside of Hawaii and Puerto Rico (and California, but on a much smaller scale), the US relies on green coffee imports to support its coffee industry, which contributes over US $343 billion to its economy every year. 

Hawaii and Puerto Rico account for less than 1% of US consumption, underscoring the country’s total dependence on international trade partners to meet its demand. Tariffs not only threaten the livelihoods of millions of producers at origin who supply the US but also put thousands of US coffee businesses at risk.

This spurred Coffee Bros, a New York City specialty coffee roaster, to launch its petition.

“We wanted to act quickly,” says Dan Hunnewell, the owner of Coffee Bros. “The petition is a record of support, and launching it on a platform like Change.org makes it more ‘official’. We’ve also received some media attention; the Wall Street Journal reached out to me a couple of weeks ago.”

Importers, roasters, and coffee shops in the US (and further afield) are already grappling with high coffee prices, rising operating costs, and increasing inflation. To avoid absorbing additional costs, many have had little choice but to raise their retail prices. Some US cafés have reported that they increased their menu prices by 25%, while customers order smaller drinks to offset higher prices.

The impacts across the supply chain

Tariffs are exacerbating a high C price, increased labour and energy costs, and tighter cash flow. For many roasters and coffee shops, the financial strain is difficult, if not impossible, to cope with.

Some have reported tariff fees of over US $91,000 for shipments of 240,000 lbs of green coffee from Latin American countries, which have lower levies compared to countries like Vietnam, Indonesia, and India.

However, it’s not just green coffee that’s impacted.

“Many of the paper goods and packaging used in the US originate from China. You could relocate manufacturing to the US, but you would still face cost increases,” Dan tells me. “Costs are also rising from a shipping perspective. Tariffs increased to 145% for China, prompting a halt in shipping from the country. We’re now down to 50% or 40% for China, so shipping containers have started to move, but there’s now a backlog of shipping containers.”

There are also broader concerns about quality and sustainability, both of which are central to the specialty coffee industry.

“Our primary concern is that coffee quality in the US will be compromised if cafés and roasters downgrade their coffee to offset the price increases,” says Dan. “There’s now additional complexity and documentation for producers to send coffee to the US. They also have to worry about US roasters and cafés backing out of a potential purchase because of tariff costs. 

“This could make producers second-guess sending coffee into the US. Why go through that hassle when you have folks in the Middle East and Asia willing to pay top dollar, and they don’t have these barriers?” he adds. “Over the last ten to 15 years, US roasters and coffee shops have been building relationships with producers. That could all go down the drain with tariffs in play.”

But will the Trump administration exempt coffee?

The coffee industry is taking a proactive stance against trade tariffs and is pushing hard for an exemption. Alongside the National Coffee Association’s advocacy efforts, which were “well received” by the Trump administration, Coffee Bros’ petition highlights how the levies will impede coffee quality, disrupt well-established global coffee supply chains, and drive up consumer prices.

As the global coffee sector faces one of the most turbulent periods in its history, tariffs are likely to exacerbate market volatility. Actors and stakeholders across the supply chain, both at origin and in the US, will be affected, adding further financial strain and operational uncertainty.

That said, it’s still not clear whether the US government will exempt coffee from tariffs. US President Trump’s strategy of making sudden, bold announcements and then quickly backing down or doubling down makes it increasingly difficult to predict what might happen.

“I think the intention is to move fast and hit everything and then potentially make exemptions in the future,” Dan says. “If enough large companies start to manufacture in the US, I think the government will eliminate tariffs. But if that doesn’t happen, there should be a large advocacy for removing tariffs at an industry level, and coffee and tea are two industries that stand out.”

Many US consumers consider coffee a daily necessity; it’s the most consumed beverage in the country. Specialty coffee consumption has also increased by 18% over the last five years, emphasising how coffee quality and flavour have become more important purchasing factors, even as products like matcha and RTD functional drinks proliferate.

“Consumers are supporting the petition because they want specialty coffee,” Dan says. “When tariffs force cafés and roasteries to make tough decisions and source lower-quality coffee to make up the difference, it impacts the consumer just as much as the business.”

Political uncertainty stands in the way of success

Whether coffee’s immense popularity is a sufficient case for tariff exemption remains to be seen. 

Moreover, there is broader uncertainty about the legality of these levies. In late May, a US court ruled that President Trump overstepped his authority by imposing such sweeping, steep tariffs. The White House quickly filed to suspend the ruling, which the US federal appeals court accepted. 

For now, the tariffs remain in place. But with international trade negotiations ongoing, the levies change on a daily basis. Trump recently announced a 55% tariff on imports from China, following an agreement to a 30% rate in early May, signalling the volatility of the administration’s decision-making.

“There’s something new every day in the world of tariffs,” says Dan. “We hope the petition gets as much exposure as possible, so that someone in the administration or the Small Business Association can also help push this.”

Given its significance to the US economy and the country’s dependence on imports, many are confident that the Trump administration will eventually exempt coffee. However, it’s difficult to determine a timeline. 

“People in the US can reach out to local representatives and share the petition with them. This is a small business problem, which could make a compelling case for tariffs hurting tens of thousands of cafés and roasteries across the country,” Dan says. “A 10% tariff on very thin margins on coffee is painful.

“Support your local cafés and roasters. The coffee industry needs a strong coalition uniting behind one voice.”

Petition to exempt coffee from tariffs reaches over 13,000 signatures –  but will it happen? – Perfect Daily Grind