Tariffs increase coffee costs: Does Trump’s tariff policy threaten your morning coffee?
“Coffee will become even scarce unfortunately, unfortunately,” said Colon, founder and roaster at Fuego Coffee Roasters. “Seeing the dramatic losses of Brazilian crops is a perfect example.”
The loss of calories and drought has reduced yield forecasts in Brazil and Vietnam, the world’s largest coffee growers. Global production is expected to increase, but not as much as commodity market investors expect. This has risen coffee prices, mainly due to continued high demand in Europe, the United States and China.
Prices peaked in February, but remained high, forcing bakery like Colon to weigh the cost of absorbing and how much to pass to consumers.
The legume colon is $5.50 per pound baked in early March, more than double the cost in September. That’s the mid-range beans used for mixing. Specialty coffee – Growing in subtle climates to slow growth and increase flavor – costs more.Please read also: “Really it’s like where we are now”: Strange remarks from Trump’s trade adviser With the Tariff War President Donald Trump’s current 10% tariffs cover most coffee-producing countries, including Brazil, Ethiopia and Colombia, and are expected to boost American costs. In his chaotic tariff statement – at some point he threatened 46% tariffs on Vietnamese imports and 32% of Indonesian imports before the suspension – U.S. coffee roasters are reconsidering their supply chains.
“With all this change in coffee, maybe we should open our own damn farm,” Cologne muses.
Of course, rural New York is not an option. The best coffee in the world thrives near the equator, where the seasons are long and high in height, slow growth allows beans to collect flavor. But Cologne, Puerto Rico, and her husband, took root, is not a serious option either – labor costs are too high and she fears the increased risk of causing hurricanes.
She shrugged and bought coffee from Hawaii and California, which she said was poor quality, overpriced or both.
According to the International Coffee Organization’s market report, global coffee green exports fell 14.2% in February compared to a year ago. The shortage led to the highest ever price of raw coffee in February, breaking the 1977 record when severe frosts wiped out 70% of Brazilian coffee factories.
Daria Whalen, a buyer of San Francisco-based ritual coffee roaster, said climate isn’t the only thing that raises prices. Inflation is driving the costs of labor, fertilizer and borrowing, she said.
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She described trying to complete Trump’s contract and start a contract between tariffs in Mexico in April. It reminded her of the one that threatened Colombia a month ago and then pulled out tariffs that would affect coffee prices.
“It’s kind of like a roller coaster day because it doesn’t exist at the end of the day,” Warren said.
Some of the recent increase in coffee prices may be due to importers buying additional some at expected tariffs. Colon believes that prices will still rise as import taxes begin to be paid. As consumer confidence reaches a 12-year low, the colon may see a decrease in demand for her quality coffee.
“It’s hard on our end because it can raise prices, it’s hard on the end of consumers because they have to pay more at the end of the farmers because they can suffer real huge losses,” Cologne said.
But she is committed to expanding.
Last December, she and her husband borrowed $50,000 to buy a custom coffee roaster from Türkiye, which will triple. They try to increase sales by adding new wholesale customers, such as coffee shops, and sell directly to homes with a monthly subscription service.
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The colon has raised the wholesale price of a pound of baked beans by 25 cents. They are considering pouring rain and espresso drinks at two retail locations.
One of the couple said they did not look at the price of coffee on the receipt. For them, it’s a treat.
“We know we can find cheap coffee elsewhere,” said Rob Newell, a high school biology teacher who is also a teacher, and said. “Maybe it just because we are new parents, but you stay in the house all day.”
The colon is also seeking to cut costs.
The warehouse she baked had some extra space, so she claimed she stacked more raw beans there to save $500 on the monthly storage cost of the port city.
She tried to build relationships with farmers to minimize price spikes and control legumes quality. She described working with a Colombian farmer, coffee prices rose in February to lock in a one-year contract that avoided the worst growth.
Like many small business owners, she had to get used to the complexity of tariffs.
In January, she turned down a court for Montreal coffee importers, who suggested that the strength of the Canadian dollar allowed her to save money by importing through warehouses. She fears Canadian tariffs could raise prices. Additionally, coffee has to cross the extra borders, risking delays. The value of the US dollar has been up and down.
“I hope things get less complicated than more,” she said.
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