NewKerala.com

Key Points

Ethiopia is scrambling to secure new coffee buyers after US tariffs put its $2.65B export earnings at risk. The country is pivoting to Asian and Middle Eastern markets, including China and Saudi Arabia, to offset potential losses. Officials vow to protect the sector, which saw record shipments last fiscal year. The move highlights Ethiopia’s reliance on coffee as a key economic driver.

Key Points: Ethiopia Diversifies Coffee Markets as US Tariffs Threaten Exports

  • Ethiopia expands coffee exports to 20 new markets amid US tariff pressures
  • Africa’s top coffee producer eyes China, Japan, and Saudi Arabia
  • US tariffs threaten 35% of Ethiopia’s coffee export revenue
  • Record $2.65B coffee earnings drive urgent market diversification
2 min read

Ethiopia seeks alternative coffee markets amid US tariff threat

Ethiopia shifts coffee export strategy to counter US tariffs, targeting China, Japan, and Middle East markets to safeguard $2.65B revenue.

"Ethiopia will not accept any decision that harms the coffee sector – Shafi Umer, ECTA Deputy Director General"

Addis Ababa, July 18

The Ethiopian Coffee and Tea Authority (ECTA) said Friday that it is changing its market strategy following the 10 per cent tariff imposed by the US government on the country's coffee export.

The ECTA said that efforts are being made to expand the Ethiopian coffee export market, especially to the Far East and Middle East regions.

The East African country is planning to expand the market to 20 countries in the fiscal year that started on July 8, according to Shafi Umer, Deputy Director General of the ECTA.

Ethiopia is taking new measures because the 10 per cent tariff imposed by the US government is affecting the Ethiopian coffee export market system, and new strategies are being developed to strengthen existing markets and create linkages by finding new markets, as per the authority.

Umer told Xinhua news agency that following the US tariff decision, Ethiopia is striving to strengthen trade relations with existing markets such as China, Japan, Saudi Arabia, Germany and Italy.

Umer stressed that Ethiopia, which is the largest coffee producer in Africa and the fifth largest exporter of Arabica coffee in the world, has found it necessary to make a policy change as the Trump administration's policy is affecting about 35 per cent of the country's export revenue.

The Ethiopian government will not accept any decision that will harm the coffee sector, he added.

Ethiopia earned a record 2.65 billion US dollars in revenue from coffee exports during the just-concluded 2024/2025 Ethiopian fiscal year. The East African country exported 468,967 tonnes of coffee to generate revenue, up by more than 170,478 tonnes when compared to the previous fiscal year, according to the ECTA.

- IANS

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Reader Comments

P
Priyanka N
Interesting move! I wonder if Indian coffee producers should be worried about increased competition if Ethiopia expands to our market. Our own coffee farmers in Karnataka and Kerala need protection too.
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Aryan P
This shows how developing countries need to stand together against Western economic bullying. Ethiopia is smart to look eastward - China, Japan and Middle East markets have more stable demand anyway.
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Sarah B
As someone who runs a specialty coffee shop in Bangalore, I'd love to source directly from Ethiopian farmers. Their Yirgacheffe beans are legendary! Maybe this tariff situation will make their coffee more available in India.
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Vikram M
The article mentions Ethiopia earned $2.65 billion from coffee exports. That's more than many Indian states' budgets! Shows the power of agricultural exports when done right. Our tea industry should take notes.
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Nisha Z
While I support Ethiopia's move, I hope they maintain quality standards when expanding to new markets. We've seen too many products get diluted when chasing quantity over quality. Their coffee is special because it's premium!

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