Rama Sukarta, Jakarta – The United States has imposed a 19 percent import tariff on coffee from Indonesia, a move that local industry leaders say will hurt American buyers more than Indonesian producers, given the US's heavy reliance on imported coffee.

The tariff, effective since Aug. 7, targets one of Indonesia's most valuable agricultural exports. Despite the measure, Indonesian coffee exporters remain confident about their market position. The US, the world's largest coffee consumer, does not produce the commodity domestically and relies entirely on imports from countries such as Brazil, Vietnam, Colombia, and Indonesia.

"Everything they drink is imported," said Pranoto Soenarto, deputy chairman of the Indonesian Coffee Exporters and Industry Association (AEKI), in an online interview with B-Universe Media Holdings on Wednesday. "This tariff should never have happened and ideally should be zero."

Pranoto claimed that members of the US Trade Policy Negotiating Team have already written to Donald Trump asking not to include coffee in the list of tariffed goods.

Pranoto said the letter, sent three weeks ago, noted that coffee was previously the only agricultural commodity with no import duties. He hopes Washington will reconsider, pointing out that the World Trade Organization encourages zero tariffs on products that a country does not produce domestically.

He is confident that the quality of Indonesian coffee –particularly Sumatra's arabica beans, a staple for US roasters– will keep American buyers coming back, even with the new tariff. "They will still pay the tax because they can't replace the flavor and quality we produce," he said.

While the tariff could raise prices for American consumers, Pranoto believes Indonesia's competitive edge will cushion the impact on local farmers and exporters. "This is more of a problem for them than for us," he said.

Indonesia's coffee exports surged 76.33 percent in 2024 to US$1.6 billion, according to the Central Statistics Agency (BPS). The US was the top market, followed by Egypt, Malaysia, and Belgium. Exports to the US rose from 36.6 million tons in 2023 to 44.3 million tons last year, with their value rising to $307.4 million from $215.5 million.

Source: https://jakartaglobe.id/news/us-tariff-on-indonesian-coffee-hits-american-buyers-harde