The Brazilian coffee industry has issued a stark warning that proposed US tariffs on instant coffee would ultimately increase costs for American consumers and businesses.
Industry representatives made the case during recent hearings with the US Trade Representative (USTR) in Washington, arguing that the levies would disrupt supply chains and drive up prices for end-users rather than achieving the intended trade policy goals.
The USTR initially announced the 25% tariff proposal on Brazilian goods, citing unfair trade practices that allegedly disadvantage American businesses.
The intervention by coffee producers comes as the USTR faces mounting pressure from a broad coalition of US corporations seeking exemptions from the proposed 25% tariffs on Brazilian imports.
Major companies including Coca-Cola, Tesla, and eBay have already formally requested that their Brazilian-sourced goods be excluded from the levies, citing the risk of higher costs for American consumers and operational burdens for US businesses.
The USTR initially announced the 25% tariff proposal on Brazilian goods, citing unfair trade practices that allegedly disadvantage American businesses.
The decision, directed by President Donald Trump, has sparked a wave of lobbying efforts from both US importers and foreign producers who argue that the tariffs would be counterproductive.