In an abrupt shift fueled by newly implemented trade policy, U.S. coffee companies are steering away from sourcing beans from Brazil, traditionally the world's largest exporter of arabica coffee. With a 50% tariff imposed by President Trump effective August 6, firms-ranging from brokers to roasters-are delaying new contracts and seeking flexibility in existing agreements to evade severely elevated import duties.

Industry participants contacted by Bloomberg, including a dozen brokers, roasters, and exporters, agree: "Nobody is buying anything", according to coffee broker Thiago Cazarini, who says deals with Brazil have essentially frozen.

Brazil typically supplies one-third of the U.S.'s green coffee imports, but this dominance is being challenged. Companies like Zaza Coffee in Florida, which sources roughly 25% of its beans from Brazil, say they still have inventory that will last 14 to 16 weeks. "We have breathing room... if the tariffs remain unchanged, we likely won't order Brazilian coffee." says J.P. Juárez, their director of coffee innovation.

While some roasters hesitate to disrupt familiar blends-especially given Brazil's prominent arabica profile, prized for its smoothness and used by chains like Starbucks-many are nonetheless turning to alternatives. Colombia, Vietnam, and Honduras are stepping up, as these origins face much lower U.S. tariffs (around 20%). Vietnam's robusta is more economical-though most U.S. consumers know it only from instant coffee.

Given tighter supply from Brazilian exports, imports from these other countries could hit record highs, notes Laleska Moda of Hedgepoint Global Markets. Indonesia and Uganda, with even lower tariffs, are also becoming viable options.

But diverging from Brazil may have global ripple effects. European roasters-driven by stringent upcoming deforestation regulations-could absorb much of the diverted Brazilian coffee. Likewise, China's growing coffee market may attract supply, potentially leaving U.S. buyers facing higher costs and reduced availability. Industry veteran Dave Behrends of Sucafina SA warns of these "downstream consequences."

Some U.S. roasters are better positioned-Gregorys Coffee in New York received a shipment just before tariffs took effect and expect to stretch it into mid-November. Others, like Ritual Coffee Roasters in San Francisco, foresee far more daunting economics. Their head of coffee, Daria Whalen, laments: "Absorbing a 10% tariff is hard enough for a small firm-50% feels overwhelming and unbeatable."

In sum, U.S. coffee firms are recalibrating supply chains amid trade-driven disruption: delaying or restructuring deals, diversifying sources, and bracing for enduring price pressure. With Brazil's dominance unsettled by steep tariffs, the market is entering a volatile, transitional phase.