Sept 19 (Reuters) - U.S. Representatives Don Bacon and
Ro Khanna will introduce bipartisan legislation that would
exempt coffee products from any tariffs, spokespeople for the
lawmakers told Reuters on Friday.
Brazil used to supply a third of all the coffee used in the
U.S., but shipments dried up since a 50% tariff was imposed on
Brazilian imports at the end of July.
"Families across America are feeling the cost of higher
coffee prices, which are already up 21 percent, and tariffing a
product we can't grow at a large, commercial scale, only makes
it worse," Republican lawmaker Bacon said.
Roasted coffee prices at grocery stores in the U.S. rose
20.9% in August from a year ago, according to Bureau of Labor
Statistics data.
"I look forward to working with Rep. Khanna to introduce
this bipartisan bill and believe it can help spark the broader
debate about Congress reclaiming its constitutional role in
tariff policy," Bacon, one of the few Republican voices in
Congress who has taken positions independent of President Donald
Trump, added.
Prices for arabica coffee, the mild variety mostly used by
coffee chains such as Starbucks ( SBUX ) and Dunkin Donuts, have
jumped around 50% at the Intercontinental Exchange in New York
since the Trump administration imposed its tariff on Brazilian
imports, including green coffee.
"If you drink coffee every morning, how can you not be mad
about that?" Khanna, who is a Democrat, told Reuters, referring
to the price rise.
The bill seeks to exempt coffee from any tariffs imposed
after Jan. 19, 2025, including roasted and decaffeinated coffee,
as well as coffee husks, skins, and coffee substitutes
containing coffee in any proportion.
A spokesperson for Khanna told Reuters the legislation would
be introduced Friday.
The Washington Post first reported the introduction of the
bill.