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Coffee Bros. Advocates for Tariff Exemption

In a significant move for the specialty coffee sector, Coffee Bros., a New York-based coffee roasting company, has taken a stand against newly imposed tariffs on coffee imports. The Federal Government's recent decision to levy tariffs on coffee imports from several top producing countries is seen as a pressing threat to the U.S. coffee industry, global supply chains, and ultimately, coffee consumers.

Context: Coffee Tariffs Explained

On April 2nd, the administration announced substantial tariffs on coffee imported from 15 of the most predominant coffee-producing nations, including Brazil, Vietnam, and Colombia. These nations supply the bulk of coffee consumed in the United States. Alarmingly, some tariffs now reach as high as 46%. Dan Hunnewell, co-founder of Coffee Bros., argues that the nature of the coffee market renders such tariffs both unnecessary and detrimental.

Hawaii and Puerto Rico are the only U.S. territories producing coffee, accounting for less than one percent of the coffee consumed nationally. As such, limiting access to imported coffee not only raises prices but risks significant upheaval in the industry that employs over 2.2 million Americans.

Rising Prices and Industry Struggles

Adding to the burden are skyrocketing prices of green coffee beans. In recent months, investments in raw materials have doubled due to global market speculation and adverse climate impacts particularly in Brazil and Vietnam, creating an additional strain on coffee businesses across the country. Coffee Bros. highlights that many cafes have yet to recover from the COVID-19 pandemic, with reduced staffing levels and progressively tighter profit margins.

According to reports from industry insiders, many cafes have not reopened since closures due to the pandemic, while those that did face ongoing challenges, such as emotional and financial exhaustion among workers. As noted by Hunnewell, the industry is grappling with a double whammy—facing both unexpected tariffs and soaring green coffee prices, testing the resilience of many small businesses.

Global Ripple Effects

This emerging crisis doesn't just affect U.S. businesses. Coffee producers in these exporting countries have dedicated years to sustainable practices and quality cultivation to meet American consumer demand. With potential shifts to bargain imports, these farmers could face stark changes in their operations, diverting their beans elsewhere and losing decades of economic progress in the process. As Hunnewell states, “These higher green prices provide an opportunity for farmers to reinvest and improve quality; however, it necessitates a market that values them.”

A Call for Action: Petition for Exemptions

In light of these challenges, Coffee Bros. has launched a petition titled "Exempt Coffee from Tariffs, Protect American Small Businesses and Preserve Coffee Quality," which is garnering support online. They are urging consumers and industry advocates to call upon the U.S. government to:

• - Exempt coffee from all current tariffs
• - Recognize coffee as a non-manufacturable, essential import
• - Prioritize support for small businesses, cafes, and coffee workers
• - Encourage partnerships and trade with sustainable coffee-producing countries

Hunnewell emphasizes, “Coffee isn’t steel or automobiles; it cannot be reshored. Our trade practices must mirror the specific dynamics of our supply chains—practices that support, not complicate, our partnerships.” This petition provides an essential avenue for stakeholders to voice their concerns and advocate for a future where American coffee thrives.

Coffee Bros. was founded in 2019 with a commitment to ethical sourcing and sustainable partnerships with coffee producers. The imposition of these tariffs not only jeopardizes their livelihood but threatens the well-being of countless families involved in the global coffee ecosystem. For those interested in supporting this cause, the petition can be found on Change.org under the campaign title.

For further inquiries, contact Dan Hunnewell at [email protected] or call 914-598-6495.

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