Tariffs Update
NCA reported last week that the organization has requested coffee to be exempt from the tariffs imposed by U.S. President Donald Trump. Trump announced a 90-day pause on larger tariffs, but Vietnam, Brazil, Colombia, Indonesia, Central and South America are still subject to a baseline 10% tariff. As we wait to see if the tariffs will be rescinded 100%, we at Vournas Coffee think it’s a good idea to plan for the future as best we all can.
What does that mean for you as a roaster?
The cost of green coffee will be going up by 10% on each container, which will have the ripple effect of COGS going up by an equal amount. This can and will affect your bottom line. This coupled with a continued high C-Market, delays in shipping and tight availability of some green coffees we anticipate the remainder of 2025 to be challenging for green coffee.
That being said we are optimistic, and it is possible things may start to settle down by Q3 or Q4. This uncertainty makes planning ahead tough but imperative. In the short term we are recommending the dollar cost average to help with pricing on green coffee and contract when possible. This could be applied to all coffee-related products like cups, packaging, etc as well.
It is always a good plan to stay in touch with us, but with all these events happening at once it is even that much more important. We can work with you to figure out a plan going forward on how to best manage the effects this will have on your green coffee buying and your P & L, and we can answer any questions regarding the green coffee market conditions.
The good news is we will have plenty of coffee coming down the pipe. And new crop pre-ship samples are cupping out amazing.
The old saying goes, there is never a dull moment in coffee and this year is living up to that. But as is also true in coffee – we are all in this together, and as with past fluctuations in the market we will get through this together as well.
Cheers,
Kat Vournas
C.O.O. & C.F.O
