China boosts coffee operations for least developed countries with zero-tariff policy 

CHINA – China has officially informed the World Trade Organization (WTO) of its expanded zero-tariff policy for Least Developed Countries (LDCs) that maintain diplomatic ties with Beijing.  

The updated policy is expected to benefit coffee exporters from Africa, where 32 of the 44 United Nations-designated LDCs are located. 

Under the new arrangement, coffee-producing African countries in the LDC category will gain broader access to the Chinese market. Until now, China levied an 8% tariff on raw coffee beans from certain African nations.  

However, since 2023, countries such as Ethiopia and two others have already enjoyed duty-free entry for their coffee exports. 

China imported US$165.1 million worth of African coffee in 2023. The same year, China-Africa trade reached a record high of US$282.1 billion, underscoring Beijing’s growing economic ties with the continent.  

Africa accounts for around 12% of global coffee production, with Uganda and Ethiopia alone contributing nearly 10%, according to the United States Department of Agriculture. 

US imposes 50% tarriff on Brazil  

The zero-tariff move by China comes at a time of shifting global trade dynamics. Former U.S. President Donald Trump recently proposed raising tariffs on all Brazilian products to 50%.  

Trump cited concerns about a trade imbalance with Brazil, although the U.S. actually posted a US$7.4 billion trade surplus with the South American country in 2024, according to the Office of the U.S. Trade Representative. 

Brazil exported US$11.4 billion worth of coffee globally in 2024, with the U.S. being the top importer, buying about US$1.9 billion worth roughly 8 million 60kg bags. With Brazilian coffee accounting for one-third of U.S. coffee consumption, a 50% tariff could significantly raise prices and disrupt supply chains. 

Concurrently, the U.S. has entered a trade agreement with Vietnam, the world’s second-largest coffee exporter.  

The deal reduces tariffs on Vietnamese goods to 20% in exchange for zero tariffs on U.S. products. However, transshipped items passing through Vietnam from third-party countries will face a 40% levy. 

These developments are likely to reshape global coffee trade flows, positioning Africa as a more competitive origin in the wake of shifting tariff regimes. 

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