The coffee industry is currently navigating potential tariff changes that could significantly affect pricing and supply. Companies like Klatch are particularly concerned about the impact of high tariffs on Arabica coffee, especially from regions like Sumatra. The uncertainty surrounding tariffs is forcing businesses to adapt their strategies, which could lead to increased prices for consumers or changes in product offerings.
• Klatch is facing a possible 32% tariff on Sumatra coffee, a key ingredient in their blends.
• They are currently taking a cautious approach, waiting to see how tariffs will evolve before making price changes.
• A separate line item for tariffs has been created in their budgeting, which may disappear if tariffs are lifted.
• Packaging costs from Hong Kong are also under scrutiny due to potential tariffs, complicating business planning.
Understanding these tariff implications is crucial for consumers and businesses alike. Price increases may be unavoidable, and consumers should stay informed about how these changes could affect their favorite coffee products.
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