inefficient coffee routing strategy

Why Routing Brazilian Coffee Through Third Nations Is a Dead End

50% U.S. tariff turns Brazil’s coffee reroute via third nations into a disastrous gamble—can the industry stay afloat?

How will a recent tariff impact Brazilian coffee exports to the United States? In August 2025, the U.S. imposed a staggering 50% tariff on Brazilian coffee imports. This was a sharp increase from a 10% tariff that existed earlier in the year. Brazil is a major coffee supplier, providing up to 30% of coffee consumed in the U.S. This tariff poses serious export implications for Brazilian coffee producers and their trade strategies.

Brazil is the largest coffee exporter in the world, and its coffee industry supports millions of jobs. The tariff will likely reduce Brazil’s coffee shipments to the U.S., forcing exporters to find new markets in Europe and Asia. Even before the tariff was increased, Brazilian coffee shipments had already seen a sharp decline. Many exporters were anticipating these tariff implications and sought alternative buyers, marking a significant shift in trade dynamics.

U.S. coffee roasters and importers are feeling the pinch from the increased cost of importing Brazilian coffee. Many are hesitant to absorb these costs fully. Some importers may avoid new contracts or seek to delay shipments to sidestep the tariffs. This hesitance could lead to gaps in supply that other countries like Colombia may fill, increasing competition.

Amid this complex situation, some Brazilian exporters have considered routing their coffee through additional countries to bypass tariffs. However, industry sources indicate that this is not a viable strategy. The legal and logistical challenges involved pose significant barriers.

Furthermore, U.S. buyers may still face tariffs based on the coffee’s origin, not its final shipping destination. As a result, any attempted workaround could increase costs and complicate supply chains.

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