Uncertainty looms over Colombian coffee businesses as the U.S. imposes a 10% tariff on all imports from Colombia.
Boris Wüllner, CEO of Green Coffee—the largest grain producer in the country—believes consumers will absorb the price increase but won’t stop drinking coffee.
Wüllner sees this as a chance for companies to become more efficient in their production chain to mitigate the tariff’s impact. Green Coffee plans to roast the grain directly in the U.S. market to avoid higher tax implications.
“We foresee an increase in price for consumers, who will initially bear the 10% import cost difference. Almost all coffees will be taxed at this rate, except Vietnamese coffee at 46%.”
“People won’t stop drinking coffee; they’ll seek cheaper blends. We expect a push for verticalization and cost optimization in the supply chain by reducing intermediaries to offset the 10% tariff increase.”
Reducing Intermediaries Strategy
Green Coffee is reconsidering setting up a roasting facility in Colombia, as doing so would subject the product to higher U.S. tariffs.
“Instead, we plan to roast coffee for the U.S. market there and later roast the coffees destined for other countries in Colombia.”
“By cutting intermediaries, we can become more competitive, reaching attractive prices for supermarket chains and institutional sales.”
Efficiency Margins Post-Tariff
“Even with a 10% price hike, we could still offer our coffee 5% below the competition—an interesting proposition.”
“This opens up significant business opportunities for brands like Juan Valdez, where we’re official distributors in U.S. and Canadian retail outlets. We can enter the market with reasonably priced, high-quality coffee.”
Colombian Coffee Exporters Unfazed by Tariffs
Colombian coffee exporters agree they aren’t at a disadvantage compared to their competitors. Latin American countries also face a 10% tariff, while Asian nations like Indonesia and Vietnam pay 32% and 46%, respectively.
“This presents an opportunity for Colombian coffee to gain market share, offering better quality-to-price ratios compared to Asian and Latin American origins.”
