Sipping on Surging Costs: The Coffee Crisis Fueled by Tariffs

Coffee prices in the United States are experiencing a significant increase due to newly implemented tariffs impacting local cafes and bakeries. According to industry insiders, the cost of imported coffee beans, predominantly from Brazil and Colombia, has spiked following a 10% tariff that took effect on April 5. With $100 billion spent annually on coffee, this rise threatens to alter consumer habits as many Americans begin to tighten their belts in response to mounting prices.

Cafe owner Jorge Prudencio of Bread Bite Bakery in Washington DC reported that his Colombian coffee supplier has raised prices, forcing him to consider increasing menu prices just to maintain balance. He expressed clear concern, stating, “Of course” when asked if he was worried about the situation.

Similarly, Kamal Mortada, manager of Au Lait café, noted a decline in coffee sales as customers opt for cheaper options—opting for plain coffee instead of specialty drinks with syrups and milks. Menu prices have already surged by 25%, and he has witnessed an erosion in customer numbers. Mortada himself has shifted his coffee-buying habits, now brewing at home rather than frequenting Starbucks.

On the West Coast, Jenny Ngo from Telescope Coffee is bracing for additional price hikes as her coffee and iced cup suppliers face the same tariffs. Her imports from Ethiopia and Guatemala, along with iced coffee cup supplies from China, all show signs of price surges.

The inflation crisis affects not just coffee but also staples like eggs, which have increased dramatically to more than $100 per case in some bakeries. This illustrates a broader trend affecting consumers across the country, with rising prices being a frequent topic of discussion in political realms, especially during economic debates.

Joel Finkelstein, operating Qualia Coffee Roasters, emphasized that the current tariff situation is just the latest hurdle, as coffee bean prices have already escalated since the commencement of Trump’s presidency. He anticipates further declines in sales as customers adjust to the new economic landscape.

The impact of these coffee price hikes sheds light on the greater economic realities facing many Americans, highlighting how tariffs can ripple through everyday purchases and consumer behavior.