Food & Beverage

What's the Tariff on Coffee (Roasted)?

Roasted coffee from Colombia, Brazil, Ethiopia.

💡
The 10% tariff on Coffee (Roasted) is paid by American importers, not foreign manufacturers. Your 1 lb premium coffee now costs $16.49 instead of $14.99 — that's $1.5 more, or 10% of the sticker price going directly to tariff taxes.

Current Tariff Rate

10%

Pre-2025 Rate

0%

Rate Increase

+10pp

Price Impact

+10%

+$1.5

Real-World Price Impact

Before Tariffs

$14.99

1 lb premium coffee

After Tariffs

$16.49

1 lb premium coffee

That's $1.5 more per unit — a 10% price increase paid by the American buyer.

Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.

The Story Behind This Tariff

Roasted coffee entering the US now faces a 10% tariff for the first time in modern history — raw coffee beans have been duty-free since 1832 as a deliberate policy to keep America's favorite beverage affordable. The Section 122 baseline tariff breaks nearly two centuries of free coffee trade. Colombia, Brazil, and Ethiopia are the primary origins, with roasting increasingly done at origin to capture more value (Colombian single-origin, Ethiopian specialty). The US imports $8B in coffee annually, and while 10% sounds modest, coffee is purchased frequently — the cumulative household impact is significant. Specialty coffee shops face margin compression as wholesale costs rise. The tariff also disrupts fair trade economics: origin-country roasters who invested in equipment to export finished product are penalized versus green bean exporters. Major roasters like Starbucks and JDE Peet's will likely absorb some cost initially but pass increases through within 6-12 months.

📦 Supply Chain

Primary Origin

Colombia

Made in USA

60% (domestic roasting)

Import Volume

$8.2B

Alternatives

Brazil, Ethiopia, Vietnam (robusta)

📅 Tariff Timeline

1832

US eliminates coffee import duty

0%

2025

Section 122 baseline tariff applies for first time in 193 years

10%

👥 Consumer Impact

Households Affected

130M

Annual Cost Per Household

$55

💡 Did You Know?

  • Coffee had been duty-free in the US for 193 years — since Andrew Jackson was president
  • Americans drink 400 million cups of coffee per day, making it the most consumed beverage after water
  • A 10% tariff on roasted coffee costs the average daily coffee drinker about $50-70 per year

Tariff Details

HTS Code
0901.21
Current Rate
10%
Pre-2025 Rate
0%
Tariff Type
Section 122

Legal Authority

Section 122 (Balance of Payments)

Effective: April 2025

Baseline 10% tariff on imports to address balance of payments

The tariff on Coffee (Roasted) is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.

Who Actually Pays This Tariff?

Despite claims that tariffs are paid by foreign countries, the 10% tariff on Coffee (Roasted) is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.

  • ✓ The foreign seller receives the same price as before
  • ✓ The US importer pays 10% of the customs value to CBP
  • ✓ The retailer marks up the higher landed cost
  • ✓ You pay more at the register: $14.99 → $16.49

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