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Brazil Brazil Markets

Brazil’s Coffee Exporters Ask the US to Spare Instant Coffee

By · July 12, 2026 · 5 min read

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Trade

Key Facts

The plea. Brazil’s coffee exporters asked the United States to exempt unflavoured instant coffee from a proposed 25% tariff.

The venue. The request came at a public hearing held by the US Trade Representative on 6 and 7 July.

The share. Brazil supplies more than 30% of the coffee Americans drink, making it the top supplier by far.

The dependence. More than 90% of Brazil’s instant coffee goes to the US, about a fifth of all American instant-coffee imports.

The gap. Green coffee won a tariff exemption in November 2025, but instant coffee was left out.

The clock. Washington faces a deadline of 15 July to act on the proposed duty under a Section 301 investigation.

Brazil instant coffee is the quiet ingredient behind millions of American cold brews and ready-to-drink cans. Now its exporters are fighting to keep it out of a looming US tariff.

Brazil's Coffee Exporters Ask the US to Spare Instant Coffee
Brazil supplies 30% of America’s coffee, but its instant coffee could face a 25% US tariff. Exporters told a Washington hearing that would raise US prices.
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Brazil is the engine of the world’s coffee supply, and America is its most dependent customer. That relationship is now caught up in a wider trade fight between the two countries.

This week Brazilian exporters travelled to Washington to make their case. Their target was a specific, unglamorous product: instant coffee.

Why Brazil instant coffee is exposed

The threat comes from an American trade investigation. Under a process known as Section 301, Washington is weighing an extra twenty-five percent tariff on a long list of Brazilian goods.

Section 301 is a US trade law that allows Washington to impose tariffs or other penalties on countries it believes engage in unfair trade practices. These investigations can target entire sectors or specific products, and they give the Trade Representative broad authority to act.

Green, unroasted coffee is already safe. It won an exemption back in November, part of a thaw that spared many Brazilian farm products from the steepest duties.

Instant coffee did not get that reprieve. While meats and fruits appear on the draft exemption list, the processed, soluble product remains exposed to the full surcharge.

That distinction is what brought exporters to the hearing. Brazil’s exporters council, known as Cecafé, and the soluble-coffee association ABICS asked that unflavoured instant coffee be added to the exempt list.

The difference between green and instant coffee matters because it reflects how much processing has been done. Green coffee is the raw bean, while instant coffee is a manufactured product made by brewing and then drying the liquid into powder or granules.

The argument for sparing Brazil instant coffee

Their central claim is American self-interest. Brazil is simply too big to replace, supplying more than thirty percent of all the coffee consumed in the United States.

For instant coffee the dependence is even sharper. More than ninety percent of Brazil’s soluble coffee is shipped to the US, and it covers roughly a fifth of all American instant-coffee imports.

The United States barely makes its own. Industry figures say America produces less than six percent of the instant coffee it consumes, leaving it reliant on imports it cannot quickly source elsewhere.

The everyday stakes are large. Soluble coffee is the base for ready-to-drink and cold-brew products consumed daily by tens of millions of American adults.

These products have become a major part of the American coffee market, especially among younger consumers who prefer convenience. The instant coffee inside them is invisible to most shoppers but essential to manufacturers.

Who really pays

The exporters’ pitch flips the usual tariff logic. A duty aimed at Brazil, they argue, would mostly land on American companies and shoppers.

The reasoning is about supply, not sentiment. With no easy substitute, US roasters and drinks makers would absorb higher input costs and pass much of it to consumers.

There is a competitiveness angle too. Keeping the tariff, Cecafé warns, would leave American makers of higher-value coffee drinks worse off against foreign rivals who buy the same Brazilian base more cheaply.

A separate cloud hangs over the sector. A US customs complaint alleging forced or degrading labour in Brazilian coffee remains open, which the industry disputes and is working with the labour ministry to rebut.

Why it matters

This is a test case for a bigger strategy. Brazil is trying to widen the list of exemptions rather than fight the whole tariff, using America’s own dependence as leverage.

The timing is delicate for the industry. Brazil is at the start of its 2026/27 harvest and does not yet have firm volumes to trade, leaving it outside the most competitive phase of global sales.

For a foreign investor, the read is about pricing power. When a supplier controls a third of a market and the buyer makes almost none of the product itself, tariffs tend to raise prices at home more than they punish the exporter abroad.

The outcome will signal whether Washington prioritizes protecting domestic consumers and manufacturers over applying trade pressure broadly. It may also shape how other Brazilian sectors approach the exemption process in future trade disputes.

Frequently Asked Questions

Why is Brazil’s instant coffee at risk when green coffee is not?

Green, unroasted coffee won a US tariff exemption in November 2025, but processed instant coffee was left off the exempt list. It now faces a possible 25% tariff under a Section 301 investigation, which is why exporters are asking for it to be added to the exemptions.

How dependent is the US on Brazilian coffee?

Brazil supplies more than 30% of all the coffee consumed in the United States, making it the top supplier. For instant coffee specifically, more than 90% of Brazil’s output goes to the US, and America produces less than 6% of the instant coffee it drinks.

Who would pay the tariff?

Exporters argue the cost would fall mainly on American companies and consumers, since there is no easy substitute for Brazilian supply. US roasters and drinks makers would face higher input costs and likely pass much of the increase on to shoppers.

Connected Coverage

CNI and AmCham Urge Brazil-US Deal Before July 15 Tariff

US Tariffs Trigger 55% Plunge in Brazilian Coffee Exports

Brazil Agribusiness 2026: Soy, Beef, Coffee and Export Power

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