Commodities July 16, 2026 09:48 AM

U.S. Lifts 25% Tariff on Brazilian Instant Coffee, Protecting Up to $2.5 Billion in Annual Exports

Exemption follows industry lobbying and comes after earlier tariff measures weighed on shipments to the United States

By Caleb Monroe
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Brazilian instant coffee has been granted an exemption from a newly imposed 25% U.S. tariff on imports from Brazil, a move that preserves between $2 billion and $2.5 billion in annual exports to the United States, Cecafe said. The decision comes after instant coffee remained subject to duties even after broader revocations of tariffs on other Brazilian coffee products last year, and follows a near 30% drop in U.S.-bound shipments in 2025 as industry groups lobbied for relief.

U.S. Lifts 25% Tariff on Brazilian Instant Coffee, Protecting Up to $2.5 Billion in Annual Exports
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Key Points

  • The exemption removes a 25% U.S. tariff on Brazilian instant coffee, preserving an estimated $2 billion to $2.5 billion in annual exports to the United States.
  • Instant coffee remained subject to duties even after broader revocations of tariffs on most Brazilian products last year under President Donald Trump, including green coffee beans and flavored instant coffee.
  • Brazilian instant coffee exports to the U.S. fell by close to 30% in 2025 compared with the previous year, according to the Brazilian Instant Coffee Industry Association (Abics).

Summary: Brazil's instant coffee sector has secured an exemption from a recently implemented 25% U.S. tariff on Brazilian imports, according to the Brazilian coffee exporters group Cecafe. The exemption is said to cover between $2 billion and $2.5 billion in Brazilian coffee exports to the United States each year.

The exemption is notable because instant coffee had remained subject to U.S. tariffs even after the administration of President Donald Trump revoked duties on most Brazilian products last year, including green coffee beans and flavored varieties of instant coffee. That selective application of duties left instant coffee exposed to the higher levy until the exemption was granted.

Industry data cited by the Brazilian Instant Coffee Industry Association (Abics) indicate that Brazilian instant coffee exports to the U.S. fell by close to 30% in 2025 compared with the previous year, a decline the association attributes to pressure from the tariffs. The exemption is therefore expected to reverse at least some of the headwinds that affected shipments during that period.

Cecafe said the removal of the tariff on instant coffee came about through coordinated efforts between its organization and the U.S. National Coffee Association. Cecafe's director general, Marcos Matos, attributed the exemption to those joint efforts, the report added.


Context and immediate implications:

  • The exemption protects a substantial volume of bilateral trade in instant coffee valued at roughly $2 billion to $2.5 billion annually, according to Cecafe.
  • Instant coffee had been uniquely affected among Brazilian coffee products by the 25% tariff, despite broader revocations on many Brazilian goods the prior year under President Donald Trump.
  • Brazilian exporters experienced a sharp decline in U.S. shipments in 2025, with Abics reporting a near 30% drop year-on-year.

Industry response:

Trade groups on both sides of the Atlantic engaged in advocacy that Cecafe says led to the exemption. The decision reflects a targeted policy change specific to instant coffee, while other Brazilian coffee categories had already seen duties revoked earlier.

Limitations: The information provided focuses on the exemption itself, the estimated value of protected exports, and the recent decline in shipments reported by Abics. No additional operational, financial, or timing details about implementation of the exemption were provided in the reports cited by Cecafe.

Risks

  • The report does not provide details on the duration or conditions of the exemption, creating uncertainty for exporters planning capacity and pricing decisions - this affects producers, exporters, and trading partners.
  • A prior 25% tariff had already contributed to a near 30% drop in U.S.-bound shipments in 2025, indicating volatility in demand and trade flows for instant coffee - this impacts the coffee sector and related supply chains.
  • The exemption was the result of coordinated industry advocacy, but the absence of detailed implementation guidance may leave short-term logistics and contractual questions unresolved for exporters and importers.

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