Japanese matcha exports have seen significant growth recently, driven by rising global demand. However, new U.S. tariffs threaten to disrupt this positive trend, causing concern among farmers and exporters across Japan.
At the Kokaen tea farm in Toyota, Aichi Prefecture, workers carefully harvest tea leaves destined to become matcha. Yoshitaka Noba, the third-generation owner, said, “ to the U.S. have been booming. If tariffs hit, sales will likely suffer.” His family started Kokaen in 1945, and the farm has thrived despite Toyota’s industrial reputation.
Japanese matcha exports reached a record 36.4 billion yen in 2024, more than triple the value of a decade ago. Nearly 45 percent of all Japanese matcha exports go to the United States, far surpassing Germany, the second-largest buyer at just over 9 percent. Meanwhile, tea production has declined by 20 percent over 15 years, causing a supply challenge.
To meet demand, the Japanese government encourages farmers to grow tencha, the tea leaf ground into matcha powder. Although tencha production more than doubled since 2014, it still accounts for only 5.6 percent of all tea grown. Farmers hesitate to invest because processing matcha requires costly machinery and labor.
Noba explained that farmers fear investing heavily if matcha’s popularity fades. “They’re unsure if the current demand for matcha will last,” he said. Still, the COVID-19 pandemic boosted interest in matcha’s health benefits, driving Japanese matcha exports upward.
While tea currently remains exempt from U.S. tariffs, exporters worry about future changes. The tariffs have been paused for 90 days to allow negotiations, with Japan sending envoys to Washington multiple times.
Yukiko Motohara from the Japan Food Product Overseas Promotion Center believes emphasizing matcha’s rich history and craftsmanship will keep demand strong. Noba added, “People want matcha worldwide, regardless of tariffs. But removing trade barriers would help Japanese matcha exports flourish.”
