By Marcelo Teixeira and Seher Dareen

NEW YORK (Reuters) – The United States’ National Coffee Association (NCA) has urged the Trump administration to exempt coffee from tariffs, arguing that existing duties on Canada and Mexico could raise U.S. prices by up to 50%.

In a letter to U.S. Trade Representative Jamieson Greer, NCA President and CEO Bill Murray emphasized that there is no alternative to imported coffee, unlike other products where tariffs may resolve unfair practices or promote domestic production.

With over 200 members, including importers, exporters, traders, brokers, roasters, and retailers, the NCA highlights that the coffee sector contributes $343 billion annually to the U.S. economy, with 75% of Americans regularly drinking coffee.

The North American coffee industry relies on close collaboration, with roasting, packaging, and trading operations spread across the U.S., Canada, and Mexico, making the additional U.S. tariffs concerning for the industry.

Most coffee varieties are excluded from the USMCA free trade agreement among the U.S., Mexico, and Canada, meaning they will likely incur 25% additional tariffs as soon as they come into effect.

The NCA also cautioned against imposing any tariffs on coffee-producing countries, warning of even more severe consequences.

As the world’s largest coffee importer and consumer, the U.S. primarily sources its coffee from Brazil, Colombia, and other Central and South American nations. Ongoing discussions between these countries and the U.S. administration reflect concerns over potential tariffs.

Traders cited the prospect of tariffs on South America as a significant factor driving coffee prices to record highs, surpassing $4 per pound in the wholesale market in February.