As you are likely aware, on April 5, the Trump administration imposed a baseline 10% tariff on nearly all U.S. imports, including green coffee.
On May 28, the U.S. Court of International Trade ruled the tariffs “unlawful.” However, the administration immediately appealed the ruling, and the tariffs remain in effect while the case is under review.
The tariffs apply to green, roasted, soluble and decaffeinated coffees and are determined by the country of origin — not where the coffee is processed. For example, if a Colombian coffee is decaffeinated in Canada or Mexico, the Colombian tariff rate will apply.
Tariffs are calculated based on the invoiced value of the product — that is, the price InterAmerican Coffee pays to the exporter. This forms the basis from which we must make our pricing adjustments.
What This Means for You
We know this is frustrating news — especially in the context of an already elevated coffee market. Our own importing margins are well below the costs we are now incurring to pay these tariffs, and unfortunately we have no choice but to pass these costs along for as long as the tariffs remain in effect.
In accordance with Green Coffee Association (GCA) terms, we will now be charging the tariff cost plus interest — calculated from the date the coffee clears U.S. customs to the invoice due date. The interest rate will be prime plus 3 percent.
We understand the strain this situation places on your planning and profitability, and we remain committed to transparency and partnership throughout this challenging period.
Thank you for your continued trust. Please don’t hesitate to call your trader, or email our trading team at traders.iacus@nkg.coffee, with any questions. •
