US coffee industry asks Trump to keep tariff exemption on Brazil beans

NEW YORK, July 11 (Reuters): The US coffee industry asked the Trump administration to keep Brazilian green coffee exempt from tariffs, during a session of public consultation that is reviewing tariffs on Brazilian imports.

The National Coffee Association (NCA) also asked the administration to include instant coffee in the list of tariff-free Brazilian products, saying the product is key for the competitiveness of the US coffee industry considering new product offerings such as the ready-to-drink coffee cans.

The US government is holding consultations this week related to the Section 301 investigation on Brazilian trade practices.

The Trump administration could impose a 25 per cent tariff on imports of several Brazilian products, alleging the country's practices were unfair on a range of issues from digital trade to illegal deforestation. "Ensuring tariff-free imports of these coffee tariff codes will have significant benefits for the US economy and for the nearly 200 million American adults who drink coffee each day," said NCA's President William Murray.

Brazil is the world's largest producer and exporter of coffee, and supplies a third of US needs. The country was hit by a 50 per cent tariff last year that caused havoc in the US coffee industry, until Washington decided to include green coffee in a list of exemptions. Instant coffee remained taxed at 50 per cent until the Supreme Court decision that knocked down most Trump tariffs. The product is currently subject to a 10 per cent global tariff.

Murray said the tariffs have contributed to "highly visible price inflation on popular products", putting pressure on US companies manufacturing ready-to-drink, liquid coffee bases, syrups, and food service mixtures.