Ethiopia shifts coffee export strategy amid U.S. tariff, eyes Asian and Middle Eastern markets 

ETHIOPIA – The Ethiopian Coffee and Tea Authority (ECTA) has announced a change in the country’s coffee export strategy in response to a 10 percent tariff imposed by the United States government.  

The measure, according to the authority, is negatively affecting Ethiopia’s coffee export market and overall revenue. 

Deputy Director General of ECTA, Shafi Umer, stated that Ethiopia is now intensifying efforts to expand its coffee export reach, particularly targeting markets in the Far East and Middle East.  

As part of the revised strategy, the East African nation plans to enter 20 new countries during the fiscal year that began on July 8, 2024. 

In response to the tariff, Ethiopia is strengthening existing trade ties with major markets such as China, Japan, Saudi Arabia, Germany, and Italy.  

Umer emphasized that the decision by the U.S. administration is impacting around 35 percent of Ethiopia’s export revenue, which prompted the government to take decisive policy action. 

Umer also stressed that Ethiopia, recognized as Africa’s largest coffee producer and the fifth-largest Arabica coffee exporter globally, will not accept policies that threaten the sector’s growth and contribution to the economy. 

In the 2024/2025 fiscal year, Ethiopia recorded its highest coffee export earnings, generating US$2.653 billion from 468,967 metric tons of coffee.  

The achievement exceeded the government’s expectations, with export volume reaching 144 percent of the original target and revenue surpassing 147 percent of the projected goal. Compared to the previous fiscal year, coffee export volume increased by 170,478.2 metric tons and revenue rose by US$1.226 billion. 

To professionalize the industry and maintain export quality, the Ethiopian government has introduced a new regulation that raises the minimum capital requirement for coffee exporters from 1.5 million birr to 15 million birr. The directive aims to ensure that only well-capitalized and qualified exporters are engaged in the trade. 

Further supporting sectoral development, a National Coffee Platform Steering Committee was launched to promote coordination across the coffee value chain. 

Initially introduced in November 2023, the platform brings together farmers, cooperatives, exporters, government bodies, and private stakeholders to improve sustainability and performance within the coffee industry. 

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