Canadian Coffee Industry Welcomes 30-Day Pause on U.S. Tariffs, But Long-Term Risks Remain

Toronto, ON – February 19, 2025 – The Coffee Association of Canada (CAC) welcomes the 30-day pause on proposed U.S. tariffs that could have disrupted the coffee supply chain and further increased costs for consumers. While global coffee prices continue to fluctuate due to supply chain challenges and market pressures, this delay prevents tariffs from adding another layer of cost—for now.

“Coffee is Canada’s most consumed beverage after tap water,” says Robert Carter, President of the Coffee Association of Canada (CAC). “Our research shows that 74% of Canadians drank coffee yesterday. While this pause is a positive step, we must ensure that long-term trade policies support a stable and sustainable coffee industry.”

On February 3, 2025, Canada and the U.S. agreed to delay the imposition of tariffs on imported goods while trade discussions continue. The CAC is actively monitoring developments and advocating for policies that protect Canada’s $8 billion coffee industry.

Key Concerns for the Coffee Industry:

• No Domestic Coffee Production: Neither Canada nor the U.S. grows coffee (except Hawaii), meaning both countries rely entirely on imports from Brazil, Colombia, and other key suppliers, therefore Tariffs on Coffee trade between Canada and the US do not make sense.
• Supply Chain Disruptions: The Canada-U.S. coffee trade is deeply integrated, with over USD $1 billion in annual exports between the two countries. Tariffs would slow shipments, raise costs, and impact jobs.
• Packaging & Production Impact: Tariffs on aluminum and steel, which are critical for coffee packaging, will create added expenses for businesses and consumers.
• Decaffeinated Coffee Supply at Risk: Canada supplies a significant share of decaffeinated coffee to the U.S., which has no domestic production. Tariffs could disrupt this market and limit availability.

“We are encouraged by this pause, but it’s only temporary,” adds Carter. “The CAC remains committed to working with government and industry leaders to ensure long-term trade policies support coffee businesses, jobs, and consumers on both sides of the border. Additionally, we are working with key industry partners, including the National Coffee Association (NCA) in the US, to emphasize the importance of maintaining a tariff-free coffee supply chain.”