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Bipartisan Measure Aims to Alleviate Consumer Wallet, Facing 21% Increase in Grain Prices, Partially Due to New Tariffs on Imported Coffee.
A new bipartisan bill will be introduced in the U.S. House of Representatives aimed at eliminating the tariffs on coffee, in direct response to the rising prices affecting consumers. This information was confirmed by spokespersons for lawmakers Don Bacon (Republican) and Ro Khanna (Democrat) to CNN this Friday (19). The measure comes as a reaction to a recent 50% tariff imposed on Brazilian coffee at the end of July, which had historically been one of the main suppliers to the American market.
The impact of this tariff policy is already being felt directly in retail. Data from the Bureau of Labor Statistics (BLS) indicates that roaster coffee prices in U.S. supermarkets rose an impressive 20.9% in August compared to the previous year. This inflation scenario for a product that is essential to many families has united both sides of the political spectrum in a rare demonstration of consensus on trade policy, aiming to reverse the increase.
The Detail of the Bipartisan Proposal
The bill, which according to CNN is expected to be formally introduced this Friday (19), is specific in its objectives. It seeks to widely exempt coffee products from any tariffs that have been imposed after January 19, 2025. The legislation is not limited to green coffee (unroasted), but also includes roasted coffee, decaffeinated coffee, coffee husks, and even coffee substitutes containing the bean in any proportion.
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The central aim is to reverse what lawmakers see as an unnecessary cost increase for American families. “Families across the United States are feeling the cost of higher coffee prices,” said Republican Don Bacon, according to CNN’s report. He highlighted that the country does not cultivate the bean on a large commercial scale, making imports essential and thus highly sensitive to tariff barriers that only worsen the situation.
The Impact on the Market and Brazil’s Drop
The imposition of the 50% tariff on Brazilian imports, which occurred at the end of July, significantly destabilized the supply chain. As reported by CNN, Brazil, which used to provide arounda third of all coffee consumed in the United States, saw its shipments decrease drastically. This disruption in the supply from a major global producer forces American buyers to seek alternatives, often more expensive, or to pass the cost of the tariff directly to the consumer.
The effect was immediate in the futures markets. Arabica coffee prices, the smooth variety favored by large chains like Starbucks and Dunkin Donuts, skyrocketed. Since the Trump administration imposed the tariff on Brazilian products, futures contracts on the New York exchange have seen an increase of approximately 50%. This increase in the commodities market is what eventually translates into the nearly 21% increase seen on supermarket shelves, as indicated by official BLS data.
The Political Debate Beyond the Tariffs on Coffee
Democrat Ro Khanna, co-author of the bill, directly questioned the tariff’s impact on voters’ daily lives. “If you drink coffee every morning, how can you not be upset about this?,” Khanna told CNN, referring to the rise in prices. The Democrat’s statement seeks to connect high-level trade policy, often abstract, with daily and tangible frustration, increasing public pressure for the bill’s approval.
For Republican Don Bacon, the issue goes beyond the product’s price. The initiative is seen as an opportunity for a broader debate on the role of Congress in setting tariffs, an authority that he argues has been excessively delegated to the Executive Branch. “I look forward to working with Congressman Khanna […] and believe he can help spark a wider discussion about Congress reclaiming its constitutional role in tariff policy,” Bacon stated, positioning himself independently from the hardline tariff stance of former President Donald Trump.
The bipartisan proposal to eliminate tariffs on coffee thus represents a direct attempt to curb inflation for a staple product for Americans. At the same time, it signals a significant political movement about who should control the country’s trade policy, with direct impacts on major producers like Brazil and on consumers’ wallets.
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