US Congress proposes bipartisan bill to exempt coffee imports from tariffs after price surges 50%

US lawmakers have introduced a bipartisan bill to exempt coffee imports from tariffs after a 50% price surge sent New York's Arabica coffee prices soaring by more than 50% and disrupting imports from Brazil.

On September 19, 2015, at 4:57 PM, Reuters, citing the Washington Post, reported that Republican Don Bacon and Democratic Ro Khanna were preparing to introduce bipartisan legislation to exempt coffee products from import tariffs that will come into effect after January 19, 2025.

The exemption reportedly covers roasted coffee, decaffeinated coffee, including coffee husks and grounds, as well as coffee-based beverages or substitutes.

Bacon and Canna argue that their focus on coffee is to help Americans cut costs on essential consumer goods, Bacon told the Washington Post.

“Why should we tax American citizens on products we don't produce ourselves? It makes no sense.”

Coffee is one of the products that has caused food prices in the United States to remain high, following the Donald Trump administration's announcement of a 50% tariff on coffee imports from Brazil, including green coffee, in late July.

Since then, prices for Arabica coffee, a mild variety used by major coffee chains like Starbucks and Dunkin' Donuts, have risen about 50% on New York's Intercontinental Exchange futures market.

Brazil previously supplied one-third of all coffee consumed in the United States, but exports have stalled since the tariffs were imposed.

Reference: reuters.com

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