Consumers are feeling the impact of rising coffee prices, which have jumped significantly due to tariffs imposed by the Trump administration. This increase marks the largest rise in coffee prices since the 1990s, with a notable 20.9% increase compared to last year. Many coffee companies initially absorbed the costs of tariffs, but the sustained pressure from high import taxes has forced them to raise prices for customers.
• Coffee prices rose 20.9% year-over-year, with a 3.6% increase in August alone.
• Tariffs on coffee imports from countries like Brazil and Vietnam have reached as high as 50%.
• Droughts in coffee-producing regions have worsened the supply issues, contributing to higher costs.
• Coffee shops, like Corvo Coffee in NYC, have started passing costs to customers, raising prices significantly.
This situation highlights the broader effects of trade policies on everyday goods. As tariffs increase, consumers will likely continue to see rising prices, affecting their daily expenses and choices. Understanding these economic shifts is crucial for consumers as they navigate their budgets.
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