The coffee industry is facing significant turmoil as tariffs on coffee imports, particularly from Brazil, are driving prices up sharply. The average retail price of roasted coffee has already increased by 14.8% since last July, and with new tariffs in place, consumers can expect further hikes. Brazil, which supplies a large portion of the world's high-quality coffee beans, is now subject to a 50% tariff, complicating the supply chain for roasters and importers. Many are scrambling to find alternatives or absorb the costs, which could lead to higher prices for consumers. The situation is exacerbated by existing droughts and climate change, which have already impacted coffee supply.
• The 50% tariff on Brazilian coffee is causing prices to soar.
• U.S. roasters are struggling to find alternative coffee sources.
• Many small businesses are absorbing costs, risking profitability.
• Coffee consumption habits may change as prices rise.
This situation highlights the fragility of the coffee supply chain and the impact of global trade policies on everyday consumers. As prices rise, coffee drinkers may need to adjust their habits, potentially leading to a shift in how coffee is consumed in the U.S. The coffee market's volatility underscores the importance of understanding global trade dynamics and their effects on local economies.
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