Is Ethiopia Finding New Coffee Markets Amid US Tariff Challenges?
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Synopsis
Ethiopia is adapting its coffee export strategy due to a new US tariff. As the largest coffee producer in Africa, the nation is seeking to establish connections in the Far East and Middle East, aiming to secure its revenue and trade relationships.
Key Takeaways
- Ethiopia is the largest coffee producer in Africa.
- The US has imposed a 10 percent tariff on Ethiopian coffee exports.
- The nation plans to expand its market to 20 countries this fiscal year.
- Ethiopian coffee generated a record $2.65 billion in revenue last year.
- Trade relations are being strengthened with existing markets like China and Japan.
Addis Ababa, July 18 (NationPress) - The Ethiopian Coffee and Tea Authority (ECTA) announced on Friday that it is adjusting its market strategy in response to the 10 percent tariff recently implemented by the US government on Ethiopian coffee exports.
According to ECTA, the aim is to broaden the Ethiopian coffee export market, particularly targeting the Far East and Middle East regions.
The East African nation intends to reach out to 20 countries during the fiscal year that began on July 8, as stated by Shafi Umer, Deputy Director General of ECTA.
Ethiopia is adopting new strategies due to the significant impact of the 10 percent tariff on the country's coffee export sector, focusing on strengthening existing markets and forging new connections, according to the authority.
Umer shared with Xinhua news agency that in light of the US tariff decision, Ethiopia is working to enhance trade ties with existing partners such as China, Japan, Saudi Arabia, Germany, and Italy.
He emphasized that Ethiopia, the largest coffee producer in Africa and the fifth-largest exporter of Arabica coffee globally, must adapt its policies due to the Trump administration's decisions affecting approximately 35 percent of the nation’s export revenue.
The Ethiopian government is determined not to accept any policies that could jeopardize the coffee industry, Umer added.
This past fiscal year, Ethiopia achieved a remarkable 2.65 billion US dollars in revenue from coffee exports. The country exported 468,967 tonnes of coffee, which is an increase of over 170,478 tonnes compared to the previous fiscal year, according to ECTA.
Point of View
It's essential for us to recognize that Ethiopia's proactive approach to redefining its coffee export strategy amid external tariffs underscores its resilience. The nation's commitment to preserving its coffee industry and exploring new markets demonstrates an understanding of the global trade landscape.
NationPress
20/07/2025
Frequently Asked Questions
What impact will the US tariff have on Ethiopian coffee exports?
The 10 percent tariff imposed by the US government is expected to significantly affect Ethiopia's coffee export revenue, which accounts for about 35 percent of the country's total export income.
How is Ethiopia planning to counter the effects of the tariff?
Ethiopia is expanding its market strategy by targeting new regions such as the Far East and Middle East, aiming to establish trade relations with 20 countries.
