A proposed US tariff of 25% on Brazilian instant coffee could disrupt supplies and increase costs for US businesses and consumers, according to Brazil’s instant coffee industry.

Impact on US Consumers

More than 90% of Brazil’s instant coffee is destined for the US, accounting for over a fifth of the country’s instant coffee imports. The Brazilian Soluble Coffee Industry Association (Abics) warns that the tariff would increase consumer prices and squeeze business margins, disproportionately affecting lower-income households that rely on affordable coffee.

The US produces less than 6% of its own instant coffee products, and there are currently no suppliers capable of replacing Brazil’s volumes at comparable prices, said Aguinaldo José de Lima, Abics executive director.

Industry Response

Representatives from Abics, Brazilian coffee exporters’ group Cecafe, and the US-based National Coffee Association participated in public hearings in Washington, arguing that the proposed tariff would increase consumer prices and harm the industry.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.