Ethiopia eyes new coffee markets amid US tariff impact

Ethiopia eyes new coffee markets amid US tariff impact

Ethiopia is actively seeking alternative international markets for its coffee exports after the United States imposed a 10% tariff on its shipments, a move that has significantly disrupted the nation’s coffee sector.

The Ethiopian Coffee and Tea Authority (ECTA) announced it is revising its market strategy and plans to expand coffee exports to at least 20 new countries in the 2025 fiscal year, with a focus on the Far East and Middle East regions. According to Shafi Umer, Deputy Director General of the ECTA, Ethiopia aims to strengthen trade relations with nations like China, Japan, Saudi Arabia, Germany, and Italy.

“The 10% tariff imposed by the US has had a substantial impact, affecting roughly 35% of Ethiopia’s export revenue,” Umer stated. As the largest coffee producer in Africa and the world’s fifth-largest exporter of Arabica coffee, Ethiopia is realigning its policies to mitigate this economic blow.

The Trump administration’s tariff decision has prompted Ethiopia to not only solidify its current trade partnerships but also diversify its coffee export destinations. Umer emphasized that the Ethiopian government will not accept any measures that threaten the health of its coffee industry, a key pillar of its national economy.

In the recently concluded 2024/2025 fiscal year, Ethiopia earned a record $2.65 billion in coffee export revenue, exporting nearly 469,000 tonnes—an increase of over 170,000 tonnes compared to the previous year, according to ECTA data.

The government’s push for diversification reflects a broader strategic response to safeguard its economic interests against external policy shifts, while continuing to position Ethiopian coffee as a premium global commodity.

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