NCA Pushes for Tariff Exemption as Coffee Prices Soar

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The National Coffee Association is fighting to protect Americans’ morning cup of joe as new tariffs threaten to raise coffee prices by up to 50% in 2025.

Key Insights

  • Coffee prices have already hit record highs in 2025, with ground roast coffee reaching $7.25 per pound and wholesale arabica prices doubling to $4.30 per pound.
  • President Trump’s announced 25% tariff on Mexican and Canadian imports starts April 2, 2025, aimed at combating illegal immigration and fentanyl entry.
  • The NCA argues coffee should be exempt as there is no domestic alternative, and the industry contributes $343 billion annually to the economy.
  • Global supply chain issues, including climate impacts, shipping delays, and geopolitical tensions have already stressed coffee markets before these new tariffs.
  • Three in four Americans are regular coffee drinkers who could face significantly higher prices if tariffs are implemented.

Coffee Prices Already Soaring Before Tariff Impact

American coffee drinkers are already feeling the pinch from rising prices due to global supply chain disruptions. In February 2025, the average price of ground roast coffee reached an unprecedented $7.25 per pound. Wholesale arabica coffee prices have doubled from last year to $4.30 per pound. These increases come from multiple factors, including climate-related impacts affecting major producers like Brazil and Vietnam, which have significantly reduced exports. Coffee shipments from Asia and Oceania have plummeted by 31.2% in 2024 alone.

Adding to these challenges, geopolitical tensions and shipping delays in the Red Sea and Suez Canal have increased transportation costs. Meanwhile, China’s growing appetite for coffee is creating additional strain on global supply chains.

NCA Warns New Tariffs Could Devastate Coffee Market

The National Coffee Association (NCA) is urgently calling on the Trump administration to exempt coffee from planned tariffs on Mexican and Canadian imports. President Trump has announced a 25% tariff on imports from these countries starting April 2, 2025, as part of efforts to address illegal immigration and stem the flow of fentanyl into the United States. While these goals address critical national concerns, the NCA warns the tariffs could have devastating unintended consequences for American coffee drinkers and businesses.

NCA President Bill Murray has pointed out a critical reality: there is no domestic alternative to imported coffee. Unlike other products subject to tariffs, coffee cannot simply be sourced from American producers. The US is the world’s largest coffee importer and consumer, and the coffee industry contributes approximately $343 billion annually to the American economy. Industry analysts project these tariffs could increase US coffee prices by up to 50%, creating significant hardship for the three in four Americans who are regular coffee drinkers.

North American Market Interconnection Creates Additional Challenges

Most coffee types are excluded from the USMCA free trade agreement, making them particularly vulnerable to new tariffs. The coffee industry’s operations across the United States, Canada, and Mexico are deeply interconnected, creating additional complications with the proposed tariffs. Many American coffee companies have distribution networks that span all three countries, with coffee often crossing borders multiple times during processing and distribution.

The NCA’s advocacy comes at a critical time as potential tariffs on South American countries are also under consideration. Coffee companies are working to balance responsible pricing with consumer affordability, but without a tariff exemption, they warn that significant price increases may be unavoidable for American coffee drinkers in the coming year.

Sources:

  1. US coffee drinkers can expect rising prices as perfect storm of factors impact global supply chains
  2. US coffee industry asks Trump administration to exempt product from tariffs
  3. National Coffee Association calls for coffee exemption from tariffs

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