Many of these products can contain as much added sugar as fizzy drinks, where much of that sugar is added separately to the milk, but were previously exempt from the levy, which so far has seen the average sugar content of drinks in scope fall almost 50% since it was introduced. Plain, unsweetened milk and milk-alternative drinks are not and will not be included.

Obesity is one of the root causes of diabetes, heart disease and cancer. With the UK now having the third highest rate of adult obesity in Europe, it remains a critical public health challenge, costing the NHS £11.4 billion a year, 3 times the NHS budget for ambulance services.

This and other measures the government is taking to tackle the obesity crisis will prevent hundreds of thousands of people becoming obese, helping to prevent cancer, heart disease and stroke.

Health and Social Care Secretary Wes Streeting said: “An unhealthy start to life holds kids back from day one, especially those from poor backgrounds like mine. We’re on a mission to raise the healthiest generation of children ever, and that means taking on the biggest drivers of poor health.

The levy has already shown that when industry cuts sugar levels, children’s health improves. So, we’re going further.

A healthier nation will mean less pressure on our NHS, a healthier economy and a happier society. It’s a simple change that is part of this government’s mission to give every child a healthy start to life.”

The threshold is being lowered from 5g to 4.5g of sugar per 100ml. This means more high-sugar drinks will fall under the levy unless manufacturers reduce sugar, with businesses given until 1 January 2028 to reduce sugar in their drinks.

This is a levy on manufacturers and importers, which has led to companies acting by halving sugar content in popular drinks to avoid the tax. The government expects companies to do the same with the extension.

Changes follow a government consultation that ran from April to July 2025. HMRC has today (25 November 2025) outlined the final policy in a formal response: Strengthening the Soft Drinks Industry Levy: summary of responses.

High sugar intake puts children at greater risk of dental decay and obesity – and obese adults are at risk of long-term health conditions such as type 2 diabetes, heart disease and some cancers. Tooth decay outpaces other common childhood conditions, including acute tonsillitis, as the leading cause of hospital admissions among 5 to 9 year olds in England.

Between 2015 and 2024, the levy has cut sugar levels in affected products by almost half.

These interventions have led to substantial reductions in hospital admissions for children requiring caries-related tooth extractions, with decreases of over 28% among 0 to 4 year olds and more than 5% among 5 to 9 year olds.

In addition, businesses have consistently experienced increased sales of drinks. According to comprehensive Department of Health and Social Care data, these products recorded a 13.5% rise in volume sales (litres) between 2015 and 2024, demonstrating strong consumer acceptance and the commercial viability of healthier reformulated beverages.

The new plans are expected to reduce daily calorie intake by around 4 million in children and 13 million in adults across England. This could prevent almost 14,000 cases of adult obesity and nearly 1,000 cases of childhood obesity.

It is expected to also:

• deliver almost £1 billion in health and economic benefits, including by saving the NHS £36 million
• reduce social care pressures by £30 million
• contribute around £221 million in economic output through improved workforce participation

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This follows their decision at the last plenary to fast-track a new proposal from the Commission.

One year postponement for all companies

According to Parliament’s position, companies will have an additional year to comply with new EU rules to prevent deforestation.

Large operators and traders will now have to respect the obligations of this regulation as of 30 December 2026, and micro- and small enterprises from 30 June 2027.

This additional time is intended to guarantee a smooth transition and to allow the implementation of measures to strengthen the IT system that operators, traders and their representatives use to make electronic due diligence statements.

Simplification of due diligence requirements

MEPs find that the onus on submitting a due diligence statement should fall on the businesses who first introduce the relevant product onto the EU market, and not the operators and traders that subsequently commercialise it.

The changes by MEPs will also reduce the obligations for micro and small primary operators which would now only have to submit a one-off simplified declaration.

Parliament requested a simplification review by 30 April 2026 to assess the law’s impact and administrative burden.

Next steps

The text was adopted by 402 votes to 250 and with 8 abstentions.

Parliament is now ready to start negotiations with member states on the final shape of the law, which has to be endorsed by both Parliament and the Council and published in the EU Official Journal before the end of 2025, for the one-year delay to enter into force.

Background

The regulation being simplified was adopted by Parliament on 19 April 2023. It seeks to fight climate change and biodiversity loss by preventing deforestation linked to EU consumption of cocoa, coffee, palm-oil, soya, wood, rubber, charcoal, printed paper, and cattle products.

The United Nations Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest – an area larger than the EU – were lost to deforestation between 1990 and 2020. EU consumption is responsible for around 10% of global deforestation. Palm oil and soya account for more than two thirds of this.

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In New York, the main contract for March delivery lost 1.9%, closing at a 7-week low 369.45 cents. In London, the benchmark contract for January delivery fell 2.7%, ending the week at $4,506.

The decline of the real, which reached its lowest level against the dollar in the last five weeks, also contributed to the downturn in coffee futures.

The Trump administration’s decision was welcomed by the National Coffee Association of the United States (NCA), the leading association of the US coffee industry.

The Brazilian Specialty Coffee Association (BSCA) also expressed satisfaction, stating in a note that the new executive order promulgated by President Trump on 20 November corrected the distortions “created by tariffs between the main buyer and consumer market for coffee, the US, and the main global producer and exporter, Brazil.”

Tariffs between August and October contributed to exports of specialty coffee falling 55% to 190,000 60-kilogram bags versus the same period in 2024, according to BSCA

However, 40% tariffs remain in place on imports of processed coffee. This is a severe blow to the Brazilian industry, as the US accounts for 20% of soluble coffee exports.

Brazilian exports of soluble coffee to the United States have fallen by 52% since last August.

“Instant coffee was not included in the exemptions specified in the annexes to the Executive Orders,” the Brazilian Instant Coffee Association (ABICS) said in a statement. “This contrasts with the overall progress in bilateral negotiations and represents a continuing challenge for the sector.”

If tariffs are maintained, Brazil risks being permanently replaced by other suppliers, ABICS added.

“Once that market share and consumer loyalty are lost, future recovery will be an extremely difficult mission, with lasting losses for the entire national production chain,” ABICS concluded.

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“Two-thirds of American adults drink coffee each day, and every cup will cost less thanks to President Trump’s decision to remove tariffs on coffee imports from Brazil – the world’s largest coffee producer.

Tariff-free trade of America’s favorite beverage will ease cost-of-living pressures, keep a healthy diet choice affordable, and strengthen coffee’s enormous contributions to the U.S. economy.”

About the National Coffee Association (NCA)

The National Coffee Association (NCA), established in 1911, is the United States’ oldest and largest trade organization representing coffee businesses of all types and sizes, including the producers, roasters, brands, and other companies responsible for 90% of U.S. coffee commerce.

More American adults drink coffee each day than any other beverage other than bottled water, and coffee supports 2.2 million U.S. jobs—operating in every U.S. state and territory and contributing nearly $350 billion to the U.S. economy every year. For more information, visit ncausa.org or contact coffee@ncausa.org.

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The Council’s press release is reproduced below.

Today the Council adopted its negotiating mandate on a targeted revision of the EU regulation on deforestation-free products (EUDR). The aim is to simplify the implementation of the existing rules and to postpone their application to allow operators, traders and authorities to prepare adequately.

Following concerns from member states and stakeholders about the readiness of companies and administrations, as well as about technical issues related to the new information system, the Council supports the Commission’s targeted simplification of the due diligence process.

The Council also pushes to introduce a uniform one-year postponement of the application of the regulation for all operators, until 30 December 2026, with an extra six-month cushion for micro and small operators.

The Council removed the ‘grace period’ initially proposed by the Commission for large and medium companies, opting instead for a clear extension of the application date for all operators, regardless of their size. The mandate maintains and adds on the simplification measures originally proposed by the Commission, focusing on reducing administrative burdens while preserving the objectives of the regulation.

Main elements of the Council position

The Council’s mandate has introduced a number of changes to the Commission’s proposal to further reduce the administrative burden on operators, particularly small and micro operators, and allow for a smooth implementation of the regulation.

Under the Council’s position:

• the provisions of the EUDR would apply from 30 December 2026 for medium and large operators and 30 June 2027 for micro and small operators
• the obligation and responsibility for submitting the required due diligence statement would fall exclusively on the operators who first place the product on the market
• downstream operators and traders would no longer have to submit separate due diligence statements, but only the first downstream operators must keep and pass on the reference number of the initial statement
• micro and small primary operators would submit only a one-off simplified declaration

The Council also tasked the European Commission with carrying out, by 30 April 2026, a simplification review assessing the EUDR’s impact and administrative burden on operators, particularly small and micro operators. Where appropriate, the review should be accompanied by a legislative proposal.

Next steps

On the basis of this mandate, the Council will start negotiations with the European Parliament in order to reach a final agreement in the coming weeks and before the current EUDR becomes applicable as of 30 December 2025.

Background

The regulation on deforestation-free products entered into force in June 2023 with the aim of ensuring that certain commodities, such as cattle, cocoa, coffee, oil palm, rubber, soya and wood, and their derived products placed on or exported from the EU market have not caused deforestation or forest degradation.

Its main provisions were initially due to apply from 30 December 2024. Following concerns raised by member states, third countries, traders and operators about readiness, an initial one-year postponement was adopted in December 2024.

The new amendment, proposed by the Commission in October 2025, responds to continuing implementation challenges, in particular the need to ensure the effective functioning of the EU information system and to alleviate administrative burdens for smaller operators.

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There were also declines, albeit much more modest, in the next two sessions. Thus, the week ended on Friday 14 November, with the December and March contracts at 399.80 and 374 cents, respectively.

It was a week of declining prices at the Ice Robusta, with the contract for January delivery suffering five consecutive losses, closing on 14 November at $4,223, down 9.1% from the previous Friday, the lowest level for the main contract since the end of September.

A series of optimistic forecasts on next year’s production outlook, combined with Safras & Mercado‘s initial estimate for the 2026/27 Brazilian crop, contributed to this sharp downward correction in the middle of the month.

Safras & Mercado optimistic about the 2026/27 Brazilian harvest

The authoritative Brazilian analyst forecasts a 10.5% increase in production, to 71 million bags, with more Arabica coffee and less Robusta coffee than in the previous year.

This figure is in line with an estimate released by StoneX last week.

US drops tariffs on coffee imports

The move by US President Donald Trump to sign an executive order eliminating tariffs on meat, bananas, coffee and another hundred products (from avocados to tomatoes and mangoes) also helped to ease tensions.

The decision was taken because, according to the White House, these tariffs are no longer necessary given the progress made in trade negotiations and because the United States is unable to produce these products in sufficient quantities to meet domestic demand.

According to experts, the administration’s concerns about price trends in the face of an increasingly expensive shopping basket and growing popular discontent influenced the decision.

However, it is not yet certain whether the removal of tariffs will also apply to Brazilian coffee

As Cecafé’s President Márcio Ferreira explains in a note, Brazilian coffee imports in the U.S. are subject to two tariffs: the base tariff of 10% and the additional tariff of 40%.

It is unclear whether the new executive order applies to the base tariff of 10%, the additional tariff of 40% or both. Cecafé is currently in contact with its American counterpart to carefully analyse the situation and understand the unfolding scenario, Ferreira concludes.

The tariffs are also overshadowed by the Supreme Court, which has been called upon to rule on their legality

During last week’s oral arguments, Supreme Court justices questioned Trump’s authority to impose tariffs under the IEEPA, which grants the president wide powers to freeze assets, impose sanctions, and restrict commerce but makes no mention of tariffs.

Some justices, however, pointed out that the act authorizes the president to regulate imports “by means of licenses or otherwise,” and that the term “licenses,” often involving a fee to import goods, is economically comparable to tariffs. Justice Amy Coney Barrett cautioned that overturning the tariffs “could be a mess” for courts tasked with refunding importers.

US President Donald Trump has claimed that his country would face a “national security catastrophe” if the tariffs he introduced against most trading partners this year were ruled illegal.

“The actual number we would have to pay back in tariff revenue and investments would be in excess of $2 trillion, and that, in itself, would be a national security catastrophe,” Tump wrote in a post on Truth Social last week.

Meanwhile, less than a month and a half before they come into force, the situation on the Eudr front remains up in the air

EU countries failed to reach a common position on proposed changes to the bloc’s landmark deforestation rules during a meeting of EU envoys on Wednesday, as divisions persisted over how far to go in reopening the text.

The Danish Council presidency circulated a compromise on Monday introducing some significant changes to the Commission’s original proposal, particularly with regard to the timing of implementation. However, there was no clear majority in favour of the text.

Following proposals put forward by Sweden and Austria, Germany broke the deadlock by presenting its own proposal and formally backing a one-year delay and a 2026 review that could yet fully reopen the legislation, according to an internal document seen by Euractiv.

Circulated on Thursday, the German position paper is close to a previous Austrian proposal, which also calls for a “stop-the-clock” to push the rules back to December 2026 for all operators, as well as further changes to the regulation.

Germany supports the Commission’s simplification for small farmers and foresters in the EU

Berlin also questions a new obligation introduced in the Commission’s October proposal requiring operators to communicate due-diligence statements along the supply chain, arguing it should be dropped.

In addition, a review clause proposed by Germany would instruct the Commission to assess further simplification options by April 2026, to be followed by a report and, where appropriate, new legislative proposals.

It should be noted that France and Spain have rejected any further simplification of the rules.

According to diplomatic sources cited by Euractiv, EU deputy ambassadors will meet again this week in an attempt to reach an agreement.

Time is running out, as an agreement with the European Parliament needs to be reached by the week of 15 December, Euractiv points out.

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NCA President and CEO Bill Murray commented: “NCA applauds President Trump’s action to remove reciprocal tariffs on most coffee imports, which will ease cost-of-living pressures for the two-thirds of American adults who rely on coffee each day, as well as secure coffee supplies for the U.S. companies who turn every $1 in coffee imports into $43 of U.S. economic value.

The President has also secured important new trade deals with Switzerland, Argentina, Ecuador, El Salvador and Guatemala, which deliver further benefits for securing the supply of America’s favorite beverage.

NCA urges all trading partners to advance similarly successful negotiations with the United States.”

About the National Coffee Association

The National Coffee Association (NCA), established in 1911, is the United States’ oldest and largest trade organization representing coffee businesses of all types and sizes, including the producers, roasters, brands, and other companies responsible for 90% of U.S. coffee commerce.

More American adults drink coffee each day than any other beverage other than bottled water, and coffee supports 2.2 million U.S. jobs—operating in every U.S. state and territory and contributing nearly $350 billion to the U.S. economy every year.

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Analysis from the Royal Society of Chemistry found more than a third of water courses tested in England and Wales contain medium or high-risk levels of PFAS, more commonly known as ‘forever chemicals’, with samples from the River Thames recording the highest concentrations in the country.

This group of more than 4,700 widely used chemicals has been linked to a range of health issues including testicular cancer, fertility issues, and developmental defects in unborn children.

The Royal Society of Chemistry is calling on the UK Government to introduce a ‘polluter pays’ principle, which would mandate that companies producing or using problematic chemicals contribute to their removal from the environment, similar to forthcoming EU changes to the Urban Wastewater Treatment Directive. For example, polluting companies could be made to fund additional treatment to reduce or remove chemicals from wastewater.

UK water courses can become contaminated near sites where there has been a significant discharge of PFAS, including industrial facilities that produce or use PFAS, landfill sites where contaminated liquid may leak out of waste into the surrounding soil and water, and airports, military sites, fire training areas, and sites of major fires, as PFAS are commonly used in firefighting foams.

Dr Natalie Sims, Policy Advisor at the Royal Society of Chemistry, said: “Burcu was fined for a cup of coffee down the drain, but industries releasing harmful chemicals into our rivers face no comparable scrutiny. It’s time to apply the polluter pays principle across the board.

“Burcu’s case exposes wider gaps in the way pollution is managed in the UK, with major industrial polluters too often getting off the hook. Companies that pollute the environment with toxic chemicals, like PFAS, should pay for their removal from our waterways, rather than burden already strained public purse strings.

“At the same time, we need to hold ‘diffuse sources’ – such as road run-off, waste emissions and agriculture – to the same level of monitoring and enforcement as water companies.”

Speaking of her fine, Burcu Yesilyurt added: “It’s hard not to feel like there’s one rule for ordinary people and another for big businesses. I was fined for pouring away a small splash of coffee, yet companies that release harmful chemicals into our rivers often face no consequences. If we’re serious about protecting the environment, responsibility has to start at the top.

“We don’t even properly measure how much PFAS is getting into our water, let alone expect companies to help clean it up. Until polluters pay, the rest of us will keep covering the cost. I just want a cleaner, safer future for my daughter — and that’s why I’m writing to my MP, hoping others will too.”

Water management in England and Wales is currently a hot topic in government, with a white paper expected this autumn to lay the groundwork for a Water Reform Bill in 2026.

The Royal Society of Chemistry is encouraging people to write to their MPs to make sure this opportunity is not missed to improve our water quality and impacts on the environment, which can be done at rsc.li/clean-it-up.

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“I have said from the beginning: there’s a smart way to use tariffs to help support American businesses and workers, but taxing your morning cup of coffee isn’t it,” said Senator Cortez Masto. “This coffee tax doesn’t help American business in any serious way, but it does raise costs at the grocery store for hardworking families across the United States. It’s past time to end Trump’s coffee tax.”

“The United States doesn’t grow coffee and taxing it won’t create a single American job. What it will do is raise prices for families and small businesses because the president is using an emergency declaration as an excuse to raise taxes.

The Constitution is clear about where taxing power belongs, and it isn’t in the Oval Office. Tariffs are taxes, and no president has the authority to raise taxes on a whim. We must follow the Constitution and stop treating it like a suggestion,” said Dr. Rand Paul.

Coffee production is not an industry the U.S. can reasonably onshore, and the U.S. is the largest importer of coffee in the world. Brazil, the top source for U.S. coffee imports, has faced a 50% tariff under the Trump administration’s tariff policy, contributing to a surge in prices. U.S. retail coffee prices increased by nearly 21% in August compared to the same month last year.

The No Coffee Tax Act will bring coffee tariffs back to the level they were the day before Trump took office. That level was 0% on everything other than coffee substitutes containing coffee.

Read the full bill here. Companion legislation has been introduced in the U.S. House of Representatives by Congressmen Don Bacon (R-Neb.-02) and Ro Khanna (D-Calif.-17).

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“Passing this bipartisan bill into law would be a huge relief for coffee farmers, small businesses across the U.S. that roast and sell coffee, and the 150 million Americans who drink coffee every day.

“Prior to the Trump Administration’s tariffs, the coffee industry was already in a tough spot. Droughts and extreme rainstorms caused a global supply shortage. The cost of coffee climbed to staggering highs which has left small roasters in the U.S. struggling to maintain their businesses. And moreover, coffee farmers often couldn’t realize the benefit of these higher prices due to increased costs and production challenges. Coffee has become more expensive, hurting consumers’ wallets for a product they love.

Amanda Archila, Executive Director, Fairtrade America, stated:

“The U.S. will never be able to grow enough coffee domestically to satisfy demand so charging an additional tax on top of the existing challenges is simply an unnecessary punishment for everyone who touches the global coffee supply chain. Repealing these tariffs, as well as those on other commodities that cannot be grown in the U.S., like cocoa and bananas, will help these already overstressed supply chains stabilize and help Americans save money on their grocery bills.”

Paul Colditz, Commercial Manager, Fairtrade Africa, stated:

“Tariffs can disrupt access to what have been dependable markets for the small-scale farmers who grow most of Americans’ coffee and cocoa. These widely consumed commodities cannot be grown in the U.S. at scale, so it is possible that importers will push the import duties to be absorbed upstream by the farmers themselves. For small-scale farmers throughout Africa, many of whom already live in poverty, this means a devastating loss of income due to lower prices and reduced sales volumes.

“Rescinding the tariffs on commodities that are important exports for African economies and cannot be grown in the U.S. would remove a layer of uncertainty from what is already a high-risk business sector. Africa’s cocoa and coffee farmers, in particular, have been struggling for months with compounding crises. Climate change, rising production costs, and decades of underpayment from more powerful actors along their supply chains have made it nearly impossible for them to earn a decent living. Continuing the 10-30% tariff rates imposed across various countries will be a significant blow to Africa’s farmers and their communities.

“Young Africans have already turned away from farming as a career because it is seen as a dead end. Who will grow Americans’ beloved coffee and cocoa when the challenges become so extreme that no one is willing to farm these commodities?”

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