Update on Tariffs and the Global Coffee Economy

Tariffs talks are ongoing, and new trade deals appear to be imminent, but here is where we are today. The US has implemented a 10% global import tax or tariff on nearly all imports into the US. Coffee is not grown in quantities close to consumer demands, and the US must import essentially all coffee consumed within its borders. Some other coffee producing countries like Vietnam, Indonesia and Nicaragua are facing large reciprocal tariffs on top of the general 10% tariff on imports. Though tariffs have been paused for 90 days since the announcement, the imposition has set off global sourcing challenges. We are in the ongoing process of figuring out how much of these potential tariffs can impact pricing and the availability of certain coffees.

Understanding USMCA Marking Rules and Their Impact on Coffee Prices

While Mexico does produce coffee, and their coffee does fall under the USMCA guidelines, Canada does not. Both of their ports import a lot of coffee for transport back to the US for processing, such as decaffeination, before sent to US roasters for roasting and distribution. One of our importers who uses a natural decaffeination plant in Florida is making changes to utilize decaffeination in different countries with lower tariffs.

William Murray from the NCA said on April 10th,

To recap, under the USMCA Marking Rules, green coffee from origins outside of North America that is then roasted in Canada or Mexico become a “product of Canada” or a “product of Mexico” respectively and therefore would be subject to the US tariff of 25%.

USMCA Marking Rules are relevant when considering tariffs imposed under executive orders issued by President Trump, if the goods do not qualify for tariff-free treatment under USMCA product-specific rules of origin. In the event goods qualify as USMCA originating under the product-specific rules of origin, then they will be tariff-free.

The coffee industry trade groups remain hopeful that given the US cannot grow coffee anywhere close to market demands, tariff reductions or exemptions may blunt the impact of pricing and availability of certain origins. However, this difficult to project or count on to happen.

2025 Coffee Trends: Where and How Americans Are Drinking Their Daily Brew

From the 2025 NCDT report,

“66% of American adults aged 18+ drank coffee in the past day—more than any other beverage! When, where, and how did they drink their coffee?”

• At home remains by far the most popular place to prepare coffee
• 71% of past-day coffee drinkers had coffee prepared at home only
• 16% had coffee prepared out of home only
• 13% had coffee prepared both at and out of home
• Grocery stores remain the most popular place to purchase coffee (40%), but past-day coffee drinkers who purchased coffee online doubled from 7% in 2020 to 14% in 2025.
• Drip coffee makers are most prevalent in American households (62%), but single cup brewers (42%), instant coffee (35%), bean-to-cup machines (15%), and other set ups are increasingly popular.

How Dilworth Is Navigating Tariffs to Keep You Supplied

What does this mean for Dilworth and our customers? While we were fortunate to source some coffees to help us navigate the rapid price increases in the past 9 months, we do not have enough of all the varieties needed to mitigate the impact. Looking into 2026, we will need more coffee as new crops are harvested. We are now seeing these costs passed along with new coffee orders and anticipated orders. Our goal is to ensure great tasting quality specialty coffee for our customers. We may have some turbulence in the process, but that’s the job of a roaster. You may notice certain origins or blends as being sold out while we wait on the coffees to arrive, or to reformulate them. Where we are able, we will make appropriate recommendations to try some other great coffees we have.

The import tariffs also apply to more than coffee. They will impact the cost of coffee packaging, labels, tea supplies, bottles, syrups and sauces, and so much more our customers rely on to run operations. We will do our best to communicate these and work on ways to save on their purchases.

What to Expect: Pricing Adjustments and Transparent Communication

Unfortunately, our importers/brokers cannot absorb these costs and neither can we. We will be adjusting prices accordingly for the initial general 10% tariff. As the reciprocal tariffs are put into effect or halted, we will be reviewing and making appropriate adjustments. It is hard for any of us to do a lot of advanced planning for these things, other than hoping coffee will be exempted.