Kraft Heinz, the maker of Maxwell House and Gevalia coffee, has asked its coffee suppliers to give 60 days’ notice before raising prices in response to new U.S. import tariffs.
The company issued the request in April, asking suppliers to increase prices only if the tariffs are made permanent. It also requested that any price hikes be reversed immediately if the tariffs are later removed. The move reflects the pressure U.S. companies face as they try to manage the effects of unpredictable trade policies under President Donald Trump.
The request also weakens expectations from investors and Trump administration officials that large buyers like Kraft Heinz could use their market power to negotiate lower prices and absorb the cost of tariffs.
Most coffee shipped to the U.S. falls under the Green Coffee Association contract, which clearly states that tariff costs at the destination must be paid by the buyer.
“No one on the trade side has hit the panic button yet, because it’s crystal clear what the rules are,” said a Europe-based coffee trader who exports beans to the U.S.
Kraft Heinz declined to comment on the matter. However, in the same document, the company expressed its hope that suppliers would collaborate to “mitigate the impact” of the tariffs.
The U.S. began enforcing a 10% tariff last month on all imported goods, including coffee, as part of its broader trade policy. The government is currently negotiating separate trade deals with different countries.
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