Green coffee exempt from US tariffs

Article updated on Friday, 21st November 2025.

The White House has issued a new Presidential Action modifying the scope of the reciprocal tariffs. According to the newly released Annex II, green coffee has been explicitly added to the list of agricultural products exempt from tariffs.

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Here is what is confirmed for now, what it means for your business, and what you should do next.

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The good news

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As confirmed in the White House's November 14th Presidential Action, green coffee was added to Annex II, which explicitly exempts it from the duties imposed by Executive Order 14257, the "Reciprocal Tariff".

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The modifications are effective for coffee withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on November 13th, 2025.

On November 20, 2025, the White House issued a new Presidential Action, explicitly modifying the previous Executive Order from July 30th, the one that imposed the separate 40% duty to Brazilian coffee. It states that "certain agricultural products shall not be subject to the additional ad valorem rate of duty."

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This means the "double taxation" threat is gone. Green coffee from Brazil is now exempt from both the Reciprocal Tariff (as of Nov 14th) AND the specific Brazil 40% duty (as of Nov 20).

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The Key Details:

• What changed: The administration determined that, due to progress in negotiations with the Brazilian government, agricultural imports should be removed from the sanctions list.
• Effective date: The exemption is retroactive to November 13, 2025 (12:01 a.m. EST).

• Refunds: If you cleared any goods between Nov 13 and today and paid the 40% duty, Section 2 of the order confirms that refunds shall be processed according to U.S. Customs and Border Protection procedures.

Inconclusive information

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While Brazilian coffee has been cleared, the situation for Indian coffee remains legally ambiguous due to conflicting Presidential Actions.

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Many roasters are rightly confused because Indian coffee appears on the "Exempt" list, yet India remains subject to specific sanctions under a separate Executive Order issued in August 6th.

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The Big Question: Does the new "General Coffee Exemption" override the specific "Russia-Sanction Penalty"?

• Optimistic interpretation: The White House stated the goal was to "lower food prices for Americans." Keeping a 25-50% tariff on Indian Robusta and Arabica would defeat that purpose, suggesting India is meant to be included in the exemption.
• Strict interpretation: In trade law, specific sanctions often trump general exemptions. Unless the August 6th order is explicitly amended (like the Brazil order was), Customs and Border Protection (CBP) may still be legally required to collect the 25% "Russia penalty" on Indian coffee.

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What this means for roasters

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1. Business as usual

You can now book Brazilian coffee and most of other origins with confidence. The price you see is the price you pay, no hidden premiums at the border. For Indian coffee, consider get in touch with your sales managers to clarify the tariffs.

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2. Immediate financial relief

‍If you implemented "replacement pricing" strategies as discussed in our recent panel, you are now in a strong position. The cost of goods sold (COGS) for your next shipment of coffee will likely be significantly lower than anticipated last week.

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What you should do now

• Review your contracts: If you have forward contracts (coffee still in origin) that were on hold or in question due to tariffs, contact your suppliers immediately.
• Unlock your shipments: If you had containers on hold or paused contracts, you can now give the green light for shipping.
• Check your recent invoices: If you imported Brazilian coffee in the last 7 days (since Nov 13), check with your importer or broker about filing for a duty refund.
• Budget for the worst case with Indian coffee: Until a clarification is issued, assume the 25% "Russia penalty" might still apply and price your cost of goods accordingly to avoid margin shock.
• Watch for updates: We expect a specific clarification for India in the coming days, similar to the one just issued for Brazil.

• Talk to your Sales Manager: Reach out to your Algrano representative. We can help you adjust your shipping plans and re-evaluate your sourcing strategy for the coming harvest.

We’re here for you!

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The last few months have been a rollercoaster of uncertainty. While we celebrated the resilience of roasters finding creative solutions, we are thrilled to see this barrier mostly removed.

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We are updating the Algrano marketplace to reflect these changes as soon as possible. If you have any questions about your current orders or want to secure fresh lots now, hit the chat button or email us directly.