US Coffee Tariff Bill, Smucker Price Hike, Ljubljana Coffee Festival Highlights

US Bipartisan Bill Proposed to Exempt Coffee from Tariffs

US Representatives Don Bacon (R-Neb.) and Ro Khanna (D-Calif.) are set to introduce legislation exempting coffee—including green, roasted, and byproducts—from tariffs imposed after January 19, 2025. This move comes amid soaring coffee prices in US supermarkets, the fastest increase since 1997, largely driven by a 50% tariff on Brazilian coffee imports imposed by the Trump administration. Brazil, the leading coffee supplier to the US, has seen shipments plummet by over 75% year-over-year in August 2025. The bill aims to alleviate pressure on consumers and importers facing high costs and disrupted supply chains. Domestic production remains negligible, accounting for less than 1% of US consumption, underscoring the reliance on imports. The bipartisan Congressional Coffee Caucus had earlier urged the US Trade Representative to exclude coffee from tariffs, highlighting the lack of domestic substitutes and the risk of further supply chain strain (Daily Coffee News, 19 Sep 2025; Inside Trade, 20 Sep 2025; Washington Post via Daily Coffee News, 19 Sep 2025).

JM Smucker Announces Further Coffee Price Increase Amid Tariff Impact

Food and beverage giant JM Smucker announced plans to raise coffee prices again in early winter 2025, marking the fifth increase since June 2024. The overall price hike for the year will exceed 20%, driven by rising sourcing costs and tariffs on green coffee imports from Brazil (50%) and Vietnam (20%). Despite efforts to optimize supply chains and diversify sourcing, these cost pressures are expected to dampen sales volume but increase revenue by approximately $100 million for the fiscal year. Smucker sources about 500 million pounds of unroasted coffee annually, mainly from Brazil and Vietnam. The company remains confident in coffee’s resilience due to strong consumer demand for at-home consumption (Supply Chain Dive, 20 Sep 2025).

Slovenia’s Ljubljana Coffee Festival 2025 Kicks Off

The Ljubljana Coffee Festival, Slovenia’s premier coffee event, opened September 20, 2025, at the City Museum. Now in its tenth year, the festival has grown into a major European specialty coffee showcase featuring unlimited tastings from top local and international roasters, cupping labs, and a Roasters Village presenting green beans and advanced grinders. Key highlights include the Barista Battle Challenge, Latte Art Throwdown, and sensory workshops led by importers, scientists, and sensory experts. The festival supports the expanding Slovenian specialty coffee scene, blending community, culture, and innovation (Barista Magazine, 20 Sep 2025).

Industry Context: Coffee Market Volatility and Supply Chain Challenges

Arabica coffee futures hit near-record highs in mid-September 2025, driven by US tariffs and dry weather in Brazil, before experiencing a sharp decline. The ongoing tariff dispute has resulted in a significant drop in Brazilian specialty coffee exports to the US, forcing importers to seek alternative origins. This shift may create new market opportunities but also risks logistical bottlenecks. Nestlé recently innovated by creating a recycled plastic coffee board combining 70% plastic waste and 30% used coffee grounds, reflecting sustainability trends within the sector. Meanwhile, Reborn Coffee launched a logistics subsidiary to strengthen supply chains in Korea, illustrating industry efforts to address supply disruptions (Perfect Daily Grind, 19 Sep 2025).