Coffee tariffs have finally disappeared. This time, that’s what we think (we think). Last week, it was announced that coffee and other goods not grown in the United States would be exempt from tariffs on “Emancipation Day,” a 10% cross-tax applied globally to all imports. Then over the weekend, Brazil’s vice president stated that while the 10 percent tariff had disappeared, another 40 percent tariff applied to all Brazilian goods, including coffee, was still in effect.
But finally the president signed an order abolishing this 40% fee as well. Better delayed than never.
As reported Reutersthe order was signed delayed in the evening on Thursday, November 20voland eliminates additional tariffs on key Brazilian exports, including beef, cocoa, fruit and coffee. The exemption takes effect retroactively on November 13volmeaning that any duties levied on these imports “may require repayment”. Which confirms my suspicions that the remaining 40% tariff rate is bullshit and that the government doesn’t really know how it works and thought it was previously exempting all tariffs on coffee. But whatever, I’ll take it. I won’t look that gift horse in the mouth.
National Coffee Association President and CEO Bill Murray (once again) praised the firing: “Two-thirds of American adults drink coffee every day, and each cup will cost less thanks to President Trump’s decision to eliminate tariffs on coffee imports from Brazil, the world’s largest coffee producer. Duty-free trade in America’s favorite beverage will ease cost of living pressures, make a hearty diet affordable and enhance coffee’s enormous contribution to the U.S. economy.”
In an interview with Reuters, commodities analyst Judith Gaines states that people can expect “thousands of bags of Brazilian coffee that have been sitting in bonded warehouses to begin to quickly find their way to U.S. roasters.”
Once tariffs are officially removed, the global coffee industry, for which Brazil and America have been the biggest players on the supply and demand sides respectively, can return to normal operations and hopefully provide a modicum of stability. Now we can get back to covering really crucial stories, like the parrot stealing coffee.
