Defense of soluble coffee in the USA targets the effect of tariffs on the American industry

The Brazilian instant coffee industry concentrated this Tuesday (7) a relevant part of the defense focused on inflation for Americans during the USTR (Office of the United States Trade Representative) public hearing on the proposed 25% tariff against Brazilian products, under investigation under section 301 of the Washington Trade Law.

According to José Pimenta, from the BMJ consultancy, hired by the Brazilian Association of the Soluble Coffee Industry (Abics) to represent the sector, the panel dedicated to coffee had as its main focus the impacts of a possible surcharge on the instant coffee chain and its consequences for the American industry.

According to Pimenta, although the panel brought together different links in the coffee sector, with participation from Cecafé (Brazilian Coffee Exporters Council) and NCA (National Coffee Association), the discussion ended up revolving mostly around soluble coffee.

The strategy, according to him, was to coordinate the demonstrations so that the arguments complement each other, with emphasis on the weight of the product for consumption, production and the industrial chain linked to coffee in the USA.

In the assessment of the BMJ representative, the questions asked by USTR board members focused less on consumption itself and more on the effects of an additional tariff on the American manufacturing chain.

At this point, the Brazilian defense sought to show that the taxation would not only affect soluble coffee imported from Brazil, but also segments of the beverage and food industry that use the product as an input, such as syrups, ready-to-drink beverages and other coffee-based formulations.

The arguments presented by the sector also reinforced the request to exclude soluble coffee from the proposed tariff, based on the potential impact on prices, supply and chain costs in the United States.

According to Pimenta, the defense also highlighted the weight of the product's consumption in the American market, where 11% of consumers drink instant coffee daily.

For the Brazilian industry, the objective was to demonstrate that the measure would have effects beyond the bilateral relationship, also reaching American companies and consumers who depend on the product at the end of the chain.

Source: CNN