US Tariffs on Coffee: August 2025 Update

The landscape of US coffee imports is undergoing a significant shift. Following a period of uncertainty and a 90-day pause, new tariffs are now in effect, most notably impacting coffee from Brazil. This update provides clarity on the new conditions and offers guidance for both roasters and producers on how to navigate these changes.

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What has changed? The new conditions

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As of August 7th*, 2025, a new modified country-specific tariff has come into effect. The most significant development is an executive order applying a 50% tariff on all green coffee imports from Brazil into the United States. Other origins, such as Colombia and Ethiopia, are subject to a 10% tariff, with Mexico remaining exempt under the USCMA agreement.

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How it works: The tariff is calculated based on the FOB (Free On Board) price. This new charge applies to the import of green coffee and is in addition to existing costs.

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This situation is challenging for everyone in the coffee supply chain, from roasters to producers, who are already dealing with market volatility and other global factors.

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The table below shows how US tariffs affect your coffee based on its current location: at origin, in transit, or already in the US; and what steps you can take now. Use it to review your orders and plan your next move on Algrano.

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^{*Except Brazil, the tariff of 50% is from August 6th onwards.
Source: The White House}

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Impact & Actionable insights

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Which origins are impacted?

Every origin other than Mexico* is affected by the new tariffs. Full table of origin tariffs available here →

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^{*Green coffee from Mexico is currently expected to remain exempt, as it falls under the USCMA agreement. However, there is conflicting information and uncertainty regarding whether this exemption will continue.
Sources: National Archives}

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For Roasters

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Plan your green coffee sourcing: The new tariffs on coffee will lead to a significant price increase. Many US importers have already updated their wholesale prices to reflect this additional cost for any shipment arriving after August 7th. If you haven't already, it is crucial to adjust your procurement strategy now.

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Talk to your producers and partners: Communication is key. Discuss how these new costs will affect your buying plans and work with your partners to explore solutions.

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For Producers

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Be aware of changing demand: The new tariffs on green coffee is expected to decrease US demand for coffee from origins with higher tariffs. Some US buyers may shift their focus to other producing countries to avoid the tariff. This could lead to a reshuffling of global trade flows. The volatility may create new opportunities as well as challenges.

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Monitor other markets: Producers should monitor other markets, particularly in Europe and Asia, where demand may increase.

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Talk to your roasters and partners: Open and direct communication can bring solutions for both sides. Proactively discuss the tariffs with your roasters, understand their changing needs, and work together to find the best solutions.

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Algrano’s commitment: Navigating the change together

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At Algrano, we are working to make these changes as transparent and manageable as possible.

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Our platform has been updated to show tariff-inclusive pricing, giving you a clear view of the total landed cost. In our producer section, we've also created a detailed guide to help you understand how going beyond FOB can help your sales. We are here to support our community and ensure that you have the tools and information needed to make informed decisions.

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If you have further questions reach out to your sales manager or our support team in the chat.

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This situation continues to evolve, but our commitment to direct, transparent, and fair trade remains unchanged.

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