No Coffee Tax Act

Bill Number

S. 3072

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-10-29: Read twice and referred to the Committee on Finance.

Last Updated

2025-12-09T20:01:49Z

AI-Generated Summary

Purpose

The "No Coffee Tax Act" (S. 3072) aims to prevent increases in tariffs on coffee imports from countries that have normal trade relations (NTR) with the United States. NTR, also known as most-favored-nation status, is a standard trade policy that grants these countries the lowest applicable tariff rates. The bill seeks to maintain stable, low import costs for coffee products to protect consumers and trade stability.

Key Provisions

• Short Title: The legislation is titled the "No Coffee Tax Act."
• Tariff Prohibition:
• No tariffs or duties can exceed the rates in place as of January 19, 2025, on specified coffee products imported from NTR countries.
• This prohibition overrides other laws or regulations, including those allowing country-specific tariffs or emergency tariff impositions (e.g., under national security or economic emergency authorities).
• Covered Products:
• Unroasted or roasted coffee, including decaffeinated varieties.
• Coffee husks and skins (outer layers of coffee beans).
• Any coffee substitutes that contain coffee in any amount.

Significant Changes to Existing Law

• The bill introduces a specific exemption for coffee products, limiting the executive branch's flexibility to raise tariffs under existing trade laws, such as Section 232 of the Trade Expansion Act of 1962 (for national security) or Section 301 of the Trade Act of 1974 (for unfair trade practices).
• It establishes a fixed tariff baseline from January 19, 2025, preventing future hikes on these imports from NTR countries, which contrasts with broader presidential authority to adjust tariffs unilaterally in response to trade disputes or emergencies.

Potential Impacts

• On Citizens: U.S. consumers and businesses reliant on coffee (e.g., roasters, retailers, and everyday buyers) could benefit from stable or lower prices, as tariff increases often raise import costs that are passed on to end-users.
• On Government Agencies: Agencies like the Office of the United States Trade Representative (USTR) and U.S. Customs and Border Protection may face reduced discretion in trade enforcement, requiring congressional approval for any changes to coffee tariffs.
• On International Relations: Strengthens trade predictability with NTR countries (e.g., major coffee exporters like Brazil, Colombia, and Vietnam), potentially reducing trade tensions but limiting U.S. leverage in negotiations over other issues.

Main Stakeholders Affected

• Coffee Importers and Industry: U.S. companies importing coffee products, including large roasters and distributors, who gain protection from sudden cost increases.
• Consumers: Everyday Americans who purchase coffee and related products, as stable tariffs help keep prices affordable.
• Coffee-Producing Countries: Nations with NTR status that export coffee to the U.S., benefiting from assured market access without tariff barriers.
• U.S. Government and Policymakers: Congress asserts greater control over trade policy, while executive agencies lose some tariff-setting authority.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill's override of emergency tariff powers could lead to legal challenges if it conflicts with existing trade statutes, potentially requiring court clarification on the scope of congressional limits on executive authority.
• Constitutional: It highlights tensions in the separation of powers, as Congress (under Article I) regulates commerce, but the president has historically wielded broad trade delegation; this act reasserts legislative oversight without altering the Constitution directly.
• Political: Bipartisan sponsorship (by Senators Cortez Masto and Paul) suggests cross-aisle support for consumer-focused trade protections, but it may face opposition from those favoring flexible executive tools in trade wars or supply chain crises. If enacted, it could set a precedent for sector-specific tariff freezes in other commodities.

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

Sponsor

Sen. Cortez Masto, Catherine [D-NV]

Cosponsors (4)

Sen. Paul, Rand [R-KY], Sen. Hassan, Margaret Wood [D-NH], Sen. Reed, Jack [D-RI], Sen. Rosen, Jacky [D-NV]

Recent Actions

• 2025-10-29: Read twice and referred to the Committee on Finance.
• 2025-10-29: Introduced in Senate

Bill Versions

• No Coffee Tax Act — issued 2025-10-29 — PDF (2 pages)