Coffee and Tea Manufacturers NAICS 311920

Aug 20, 2025 - 50% Tariff on Brazilian Beans

• Brazil, which supplies about a third of US coffee, faces a 50% tariff on goods it exports to the US. The steep tariff took effect on August 6 despite efforts by US coffee companies, industry associations, roasters, and Brazilian trade representatives to secure an exemption for coffee imports. Coffee manufacturers, which were already facing high prices for beans due to adverse weather conditions in producer countries that have resulted in supply shortages, are bracing for impact. In Michigan, James Defrees, of 517 Coffee Company, said his store’s core blends come from Brazil. When a 10% import tariff on coffee was imposed in April, it added 40 cents per pound to his imports. Now that tariffs have soared to 50%, he fears a nationwide shortage, Defrees told WLNS. The US imports about 24 million 60-kilogram bags of coffee annually, with Brazil accounting for 34% of that volume.
• A new study from researchers at Tufts University suggests that drinking coffee carries life-lengthening health benefits, but only if you pass on the cream and sugar, Healthline reports. Coffee is rich in antioxidants, compounds that protect against oxidative stress in your body caused by damaging free radicals that are believed to be associated with aging. Coffee is one of the biggest sources of antioxidants in the Western diet — outranking both fruits and vegetables combined. That’s because two-thirds of Americans drink coffee daily, according to the National Coffee Association, which means coffee contributes more to people’s antioxidant intake on average. Also, controlled studies examining the effects of caffeine on the brain have demonstrated it can temporarily improve mood, reaction time, memory, vigilance, and general brain function, another plus for coffee drinkers. Lastly, coffee has been repeatedly associated with a lower risk of type 2 diabetes.

• Coffee and tea prices are rising following President Trump’s imposition of a 10% tariff on US imports from all countries in April, World Tea News reports. The US ranks as the world’s second-largest importer of coffee and tea, according to the US Department of Agriculture. Indeed, the nation imports 90% of its coffee and about 80% of its tea, with major producers including Brazil, Colombia, Ethiopia, India, and China all subject to the universal 10% tariffs. Moreover, China was singled out for 145% "reciprocal" tariffs. Coffee and tea prices could rise even further when the 90-day pause on additional reciprocal tariffs that was put in place on April 9 expires and takes effect. Coffee and tea prices had already been rising as climate and geopolitical issues crimped supplies.
• Producer prices for coffee and tea manufacturers are soaring, driven by high prices for coffee beans and tea leaves due to poor harvests and labor shortages in key growing areas and new tariffs on US imports. The producer price index (PPI) for coffee and tea manufacturers, which measures prices producers receive for their products, jumped 26.2% in July compared to a year ago after rising a more modest 8.7% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. At the retail level, coffee prices increased by 14.5% year over year in July and 2.6% versus June, per the BLS. Employment by makers of coffee, tea, and other food products shrank 2.9% YoY in June, while average wages at food manufacturers rose 2% YoY in July to $24.04 per hour, down slightly from their high in January, BLS data show.