The US Commerce secretary has hinted that Trump may exempt Coffee from import tariff. Yesterday, in an interview with CNBC Squawk Box, Lutnick said:
.. I mean – Natural Resources. When he(Trump) does a deal, he does include – You grow something and if we don’t grow it – that can come in for Zero. So, if we do a deal with a country that grows mangoes or pineapples, they can come in without a tariff. Because Coffee and Cocoa would be other examples of Natural Resources.
It should be noted that Consumer Brands Association, who’s members are Major American companies such a PepsiCo, Conagra and Mondelēz, have been lobbying with the US government to have zero tariff on Coffee and other commodities on which their businesses are dependent.
According to Coffee Intelligence:
Notably, PepsiCo, Conagra, and J.M. Smucker – represented by the Consumer Brands Association – have urged the U.S. administration to exempt imports such as coffee, cocoa, and tropical fruits, which are not readily available from domestic sources. They argue that such exemptions are essential to protect manufacturers, support U.S. supply chains, and curb inflationary pressure on consumers.
