Ethiopia revises coffee export strategy after U.S. tariff blow

Ethiopia is altering its coffee export strategy after a 10% U.S. tariff disrupted a key revenue source for the country’s economy.

The Ethiopian Coffee and Tea Authority (ECTA) announced on Friday that it is reforming its market approach in response to the U.S. government's recent 10% tariff on Ethiopian coffee exports.

Shafi Umer, deputy director general of the ECTA, said the East African country is now intensifying efforts to expand its coffee export market, particularly targeting the Far East and Middle East regions. Ethiopia aims to broaden its coffee trade reach to 20 countries during the current Ethiopian fiscal year, which began on 8 July.

According to Umer, the U.S. tariff decision has significantly affected Ethiopia’s coffee market structure, prompting authorities to explore new strategies. These include reinforcing existing trade ties and identifying fresh markets to reduce reliance on the U.S., which accounts for about 35% of Ethiopia's coffee export earnings.

The new strategy will focus on strengthening partnerships with countries such as China, Japan, Saudi Arabia, Germany and Italy. Umer emphasised that Ethiopia, the largest coffee producer in Africa and the fifth largest exporter of Arabica coffee globally, views the policy change as necessary for preserving its export resilience.

"The Ethiopian government will not accept any decision that will harm the coffee sector," Umer said.

Despite the setback, Ethiopia recorded strong coffee export figures in the 2024/2025 fiscal year, earning a record 2.65 billion U.S. dollars from the export of 468,967 tonnes of coffee. This marked a significant increase of more than 170,000 tonnes compared to the previous year.

The ECTA's shift in focus is expected to reshape the global footprint of Ethiopian coffee as the country seeks to adapt to new trade realities and protect its vital export industry.

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