Paramount Coffee Company, a major coffee roaster in the Midwest, has raised prices due to tariffs imposed by the U.S. government. The National Coffee Association is seeking an exemption from these tariffs, which currently stand at 10%. The U.S. relies heavily on imported coffee beans, as domestic production is insufficient. The coffee industry is facing significant challenges, with bean prices increasing by 70% in 2024 and an additional 15% this year due to adverse weather conditions affecting key coffee-producing countries. Paramount Coffee stated that these price hikes are necessary because of rising costs linked to government tariff decisions. The company has not disclosed specific price increases. Furthermore, the industry is concerned about potential "reciprocal" tariffs on imports from Vietnam, which could return after July 9 if negotiations do not yield a resolution.
This situation highlights the vulnerability of the U.S. coffee market to international trade policies and climate impacts, affecting both producers and consumers.
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