No Coffee Tax Act

Bill Number

H.R. 5516

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-09-19: Referred to the House Committee on Ways and Means.

Last Updated

2025-12-09T19:54:38Z

AI-Generated Summary

Purpose of the Legislation

The "No Coffee Tax Act" (H.R. 5516) aims to prevent the U.S. government from increasing tariffs (taxes on imports) on coffee and related products imported from countries that have normal trade relations (NTR) with the United States. NTR, also known as most-favored-nation status, means these countries receive standard, non-discriminatory trade treatment. The bill seeks to stabilize coffee trade by locking in existing tariff rates, protecting against potential future hikes, including those under emergency powers.

Key Provisions

• Tariff Freeze: No tariffs or duties on specified coffee products can exceed the rates in place as of January 19, 2025, for imports from NTR countries. This applies regardless of other laws, regulations, or emergency authorities that might allow higher tariffs on a country-specific basis.
• Covered Products: The restriction applies to:
• Coffee, whether roasted, unroasted, or decaffeinated.
• Coffee husks and skins (outer layers of coffee beans).
• Any coffee substitutes that contain coffee in any amount.
• Scope: The prohibition overrides broader tariff-imposing laws, ensuring coffee imports from NTR countries remain at the frozen rate.

Significant Changes to Existing Law

• This bill introduces a specific exception for coffee products, limiting the executive branch's flexibility to impose higher tariffs under existing trade laws, such as those related to national security or emergencies (e.g., Section 232 of the Trade Expansion Act of 1962 or Section 301 of the Trade Act of 1974).
• Previously, the president or trade agencies could adjust tariffs on imports, including coffee, based on country-specific concerns. This act carves out coffee from such adjustments for NTR countries, creating a permanent safeguard unless Congress amends it.

Potential Impacts

• On Government Agencies: U.S. Customs and Border Protection and the Office of the U.S. Trade Representative would need to enforce the fixed tariff rates, potentially reducing their discretion in trade enforcement actions related to coffee. This could streamline administration but limit tools for addressing trade imbalances or disputes.
• On Citizens: U.S. consumers and businesses reliant on coffee (e.g., roasters, retailers, and cafes) may benefit from stable or lower import costs, helping to keep coffee prices affordable and supporting the $19 billion annual U.S. coffee market.
• On International Relations: Strengthens trade ties with NTR coffee-exporting countries (e.g., Brazil, Colombia, Vietnam), which supply over 90% of U.S. coffee imports. It could reduce tensions from unilateral tariff hikes but might frustrate efforts to use tariffs as leverage in broader trade negotiations.

Main Stakeholders Affected

• Coffee Importers and Businesses: U.S. companies importing coffee, such as roasters and distributors, gain predictability in costs.
• Consumers: Everyday Americans who purchase coffee products, potentially facing less price volatility.
• Coffee-Producing Countries: Nations with NTR status (most major exporters) benefit from assured market access without sudden tariff barriers.
• U.S. Government and Taxpayers: Trade agencies must comply, and federal revenue from coffee tariffs (currently low, around 0% for most raw coffee) could remain limited.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill asserts congressional authority over trade by restricting executive tariff powers, potentially setting a precedent for commodity-specific limits on presidential trade actions. It could face challenges if seen as conflicting with broader trade statutes, but its narrow focus on coffee minimizes overlap.
• Constitutional: Reinforces Congress's constitutional role in regulating commerce (Article I, Section 8), checking executive overreach in trade policy without violating separation of powers.
• Political: Bipartisan sponsorship (from Democrats and Republicans) highlights rare consensus on protecting a staple import. It may appeal to agricultural and consumer interests but could draw criticism from protectionists favoring tariffs to support domestic industries, though the U.S. produces little coffee itself. If enacted, it signals a move toward targeted trade stability amid global supply chain concerns.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Khanna, Ro [D-CA-17]

Cosponsors (11)

Rep. Bacon, Don [R-NE-2], Rep. Beyer, Donald S. [D-VA-8], Rep. Goodlander, Maggie [D-NH-2], Rep. Levin, Mike [D-CA-49], Rep. McGovern, James P. [D-MA-2], Rep. Carbajal, Salud O. [D-CA-24], Rep. Magaziner, Seth [D-RI-2], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Tonko, Paul [D-NY-20], Rep. Landsman, Greg [D-OH-1], Rep. Sykes, Emilia Strong [D-OH-13]

Recent Actions

• 2025-09-19: Referred to the House Committee on Ways and Means.
• 2025-09-19: Introduced in House
• 2025-09-19: Introduced in House

Bill Versions

• No Coffee Tax Act — issued 2025-09-19 — PDF (2 pages)