Trump Signs Executive Order Exempting Coffee from Future Trade Deal Tariffs

Key Provisions and Conditions of the Executive Order

The executive order places coffee on a list of 45 commodities eligible for 0% tariff treatment, focusing on goods that “cannot be grown, extracted, or naturally produced in the United States” or are not available in sufficient quantities to meet domestic demand.

Coffee has been officially classified as an “unavailable natural resource” and may qualify for tariff exemptions in future trade agreements.

Tariff exemptions will depend on the “scope and economic value” of commitments from U.S. trading partners in reciprocal trade agreements and U.S. “national interests.”
Coffee qualifies for tariff exemptions, but only when trading partners sign agreements with the U.S. government.

Current Situation

For Brazil, certain products receive 50% tariff reductions, but this list currently does not include coffee. Products that do receive reductions include: orange juice, Brazil nuts, steel products, passenger vehicles, and certain commercial aircraft components.

Currently, only Vietnam and Indonesia among major coffee-producing nations have existing framework agreements with the United States.

Industry Impact and Outlook: From Positive Signals to Cautious Reality

Recognizing coffee as an “unavailable natural resource” aligns with economic logic and creates a solid foundation for excluding coffee from future tariff regimes. However, while the new executive order may ease short-term tensions, it doesn’t eliminate underlying vulnerabilities, and the current practical effects remain limited.

Cafe Imports, a major coffee importer, noted:

“The executive order doesn’t provide relief here and now, but it introduces potential flexibility into the system. If coffee-exporting countries negotiate agreements with the U.S., coffee could eventually qualify for tariff exemptions.”

The National Coffee Association and Congressional Coffee Caucus now have a stronger foundation for lobbying for coffee tariff exemptions.

Recognizing coffee as an “unavailable natural resource” aligns with economic logic, there is no viable large-scale domestic substitute in the United States. This move sends positive signals for the specialty coffee industry specifically:

• Creates a solid legal foundation for negotiating tariff exemptions
• Acknowledges coffee’s importance in the U.S. economy
• Opens opportunities for coffee-producing nations to negotiate bilateral agreements

As Commerce Secretary Howard Lutnick explained: “If you grow something we can’t grow, then it can be imported at 0% tariffs. Coffee and cocoa would be other examples of natural resources.” The order also identifies 1,908 HTSUS categories that could qualify for reciprocal tariff exemptions for each trading partner that signs an agreement with the United States.

Despite price increases, 66% of American adults drink coffee daily, averaging nearly 3 cups, with 85% drinking it at breakfast and 82% drinking it at home. Specialty coffee has reached record popularity levels: 48% of adults consumed specialty coffee yesterday.

This demonstrates that underlying demand remains strong, but coffee prices are expected to continue fluctuating with an upward trend for the remainder of 2025.

In summary, the Trump administration’s latest move officially acknowledges that the United States cannot be self-sufficient in certain essential commodities like coffee, creating a legal framework for future trade negotiations that could benefit the global coffee industry.

Images in the article are owned by XLIII Coffee and collected from Perfect Daily Grind, Reuters.