Trump’s ‘Liberation Day’ Tariffs Set to Reshape Global Coffee Markets

On April 2, 2025, President Donald Trump announced a sweeping set of tariffs, dubbed the “Liberation Day” tariffs, aiming to address perceived trade imbalances. These measures include a universal 10% tariff on all imports, effective April 5, 2025, and additional country-specific tariffs ranging from 10% to 46% on imports from nations deemed to have unfair trade practices. Notably, major coffee-exporting countries such as Vietnam, Indonesia, and Colombia are among those affected, with tariffs of 46%, 32%, and 25% respectively.

These tariffs arrive at a time when the global coffee market is already experiencing significant volatility. According to Trading Economics & Barchart.com, coffee prices increased by approximately 14.75% since the start of 2025, reaching an all-time high of 440.85 US cents per pound in February 2025. The Food and Agriculture Organization (FAO) attributes this rise to adverse weather conditions impacting key producers like Brazil and Vietnam, leading to reduced harvests and tightened supply.

The imposition of these tariffs is expected to exacerbate existing challenges in the coffee supply chain. U.S. coffee roasters and importers, who rely heavily on imports from the affected countries, now face increased costs. Chris Kornman, Director of Education at Royal Coffee (a U.S company), noted that the 10% tariff on imports, coupled with already high commodity prices, has led to price increases across the board, cited from perfectdailygrind.com. Similarly, local coffee businesses in Charlotte, USA, report that the combination of record-high bean prices and new tariffs is forcing them to raise prices, with some cafes anticipating increases of $1.50 to $2 per cup by year’s end, cited from www.axios.com.

The National Coffee Association (U.S) has expressed concern over these developments, highlighting that coffee supports over 2.2 million U.S. jobs and contributes significantly to the economy. They warn that the tariffs could lead to higher prices for consumers and disrupt the coffee industry’s stability.

What are the Implications for Indonesian Coffee Exporters?

Indonesian coffee exporters have expressed significant concern over the new tariff structures. The Indonesian government, according to The Jakarta Post, has initiated diplomatic negotiations with the United States, aiming to mitigate potential impacts on its vital export sectors. Coordinating Minister for Economic Affairs Airlangga Hartarto has emphasized strategic actions to preserve Indonesia’s export competitiveness and economic stability.

In summary, Trump’s “Liberation Day” tariffs present significant implications for global coffee markets, notably impacting Indonesian exporters. Market participants and stakeholders across the supply chain must remain vigilant, adapting swiftly to navigate this evolving and increasingly challenging trade environment.