Coffee futures declined sharply this week following partial tariff relief announcements, excluding Brazil and India.
The most active March contract fell 16.55 cents from Monday to Monday, closing at $376.6 US cents/lb. The decline came despite broader moves by the Trump administration to ease coffee import restrictions.
White House announces selective tariff exemptions
On Tuesday, coffee futures dropped 22.85 cents per lb (5.8%) after President Trump and Treasury Secretary indicated forthcoming tariff relief for commodities that cannot be grown domestically. The White House formalized these exemptions in an executive order released Friday.
However, the relief excluded Brazil (40% tariff remains) and India (25% tariff remains). Brazil’s exclusion significantly limits the impact of the tariff reductions, as the country supplies the majority of coffee to US roasters.
Market outlook remains constrained
The administration’s decision to maintain Brazil’s coffee tariff suggests ongoing negotiations. According to Sucafina the market is expected to trade sideways between 370-390 cents/lb this week as the December contract enters its delivery period.
The selective approach to tariff relief means US roasters continue facing elevated costs on their primary coffee source, limiting the practical benefits of exemptions granted to other origins.
For real-time spot and futures coffee prices, visit: app.vespertool.com.