Ethiopia Recalibrates Coffee Export Strategy Amid U.S. Tariff Pressures

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Ethiopia is reshaping its coffee export strategy in response to newly imposed U.S. trade restrictions, including a 10% tariff on Ethiopian coffee exports. The Ethiopian Coffee and Tea Authority (ECTA) confirmed that the government is actively diversifying its coffee markets to reduce reliance on traditional trading partners.

Shafi Umer, Deputy Director General of ECTA, stated that the tariff, enacted by the current U.S. administration, is already disrupting Ethiopia’s coffee export infrastructure. In response, the country is intensifying efforts to strengthen existing trade ties while targeting emerging markets, particularly in the Middle East and Far East.

This shift marks a broader strategic effort to lessen Ethiopia’s dependency on long-established markets. The ECTA has announced plans to expand its coffee exports to 20 countries during the 2025/2026 Ethiopian fiscal year, which began on July 8, 2025.

Key markets now in focus include China, Japan, Saudi Arabia, Germany, and Italy—nations with increasing demand for premium Arabica coffee. Ethiopia remains Africa’s leading producer of Arabica and ranks fifth globally in exports.

The United States has long been a cornerstone of Ethiopia’s coffee trade, historically accounting for around 35% of export revenue. The newly introduced tariff could therefore have a significant impact on the country’s foreign exchange earnings and the livelihoods of millions who depend on the coffee sector.

Despite these challenges, Ethiopia achieved a record-breaking USD 2.65 billion in coffee export revenues during the 2024/2025 fiscal year, exporting 468,967 tonnes—a rise of over 170,000 tonnes from the previous year. These figures highlight the resilience and adaptability of Ethiopia’s coffee industry amid global market changes.

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While the Ethiopian government has expressed concern over the U.S. tariff, its approach remains focused on strategic adjustment rather than confrontation. Officials assert that external policy decisions will not be allowed to undermine the sustainability and growth of the national coffee sector.

Trade experts observe that Ethiopia’s pivot towards Asia and the Middle East reflects a broader global trend, with many African nations seeking more diversified and resilient trade partnerships. Though the long-term effects of the U.S. tariffs are yet to unfold, Ethiopia’s proactive measures may well position it as a model for responsive and independent trade policy in an evolving global landscape.