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Rising Coffee Prices in the US Driven by Tariffs
The cost of a cup of coffee is increasing across the United States as newly imposed tariffs place financial strain on local café and bakery proprietors. Several US businesses indicate that customer lines for morning lattes are diminishing as consumers become more budget-conscious and the expense of imported coffee beans escalates. Americans annually spend a substantial amount on coffee, a figure that may be subject to change due to these evolving economic factors.
Businesses Absorb Rising Import Costs
Jorge Prudencio, who manages Bread Bite Bakery in Washington DC, explained that his coffee distributor based in Colombia recently augmented prices in response to the broad tariffs initiated last week.
The vast majority of coffee consumed in the US is sourced from overseas.
Notably, the US stands as the world’s second-largest coffee importer, with primary supplies originating from Brazil and Colombia, according to data from the US Department of Agriculture.
Since April 5th, coffee imports have been subject to the 10% US tariffs levied against numerous countries.
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Speaking to the BBC, Mr. Prudencio conveyed that his coffee suppliers have informed him of forthcoming price increases in his next order.
He further mentioned that his bakery will “definitely” need to elevate prices for patrons simply to maintain financial equilibrium.
When questioned about his concerns, Mr. Prudencio admitted, “Of course.”
Consumer Behavior Shifts Amid Inflation
Kamal Mortada, the manager of Au Lait café located nearby, noted that he has observed the effects of gradually increasing prices for some time. Inflation reached a 40-year peak during the previous US presidential term.
Prior to the tariffs taking effect, ground coffee attained a record high price in March 2025, exceeding the previous year’s price by over a dollar and surpassing March 2020 prices by $3.
“We have fewer customers for coffee,” Mr. Mortada stated.
Customers Opt for Simpler, Smaller Orders
“Most customers are opting for basic coffee,” foregoing added flavors and milk, he elaborated.
Menu prices have been adjusted upwards by 25%, and customers are now choosing smaller coffee sizes.
Mr. Mortada has also modified his personal consumption habits. Instead of his customary Starbucks visit, he now prepares coffee at home.
He indicated that the price of a cup of coffee has increased by at least fifty cents and expressed apprehension about further price hikes.
Coffee Shop Owners Project Further Price Increases
On the West Coast in San Francisco, Jenny Ngo, another local coffee shop owner, is also contending with the implications of the tariffs on her business.
Ms. Ngo, who runs Telescope Coffee, mentioned she is awaiting information regarding the extent of price increases from her roaster.
Her coffee beans are sourced from Ethiopia and Guatemala, both of which are subject to the standard 10% tariff. She also imports iced coffee cups from China and reported an immediate surge in their prices.
“We unfortunately anticipate raising prices again to sustain our business,” she stated.
Broader Economic Pressures
Mr. Prudencio remains optimistic that customers will continue to patronize his establishment and purchase coffee, asserting its necessity for many.
However, recent inflation has also impacted the cost of eggs, a crucial ingredient for the bakery component of his business.
He revealed that they initially paid $42 per case of eggs when the bakery commenced operations five months prior, but within two weeks, the price soared to over $100 per case.
“Everyone is experiencing the same difficulties. We are all paying the price,” he concluded.
Egg Prices Reflect Economic Concerns
The price of eggs is frequently cited as an indicator of the US economy’s health and is often a point of political contention.
Former President Donald Trump has asserted his commitment to lowering egg costs, attributing rising prices to the prior administration’s policies and a bird flu outbreak that led to the culling of millions of egg-laying chickens.
Nevertheless, in March, egg prices reached a peak of $6.22 per dozen, according to the Consumer Price Index.
Tariffs Add to Existing Price Hikes for Coffee Bean Roasters
Joel Finkelstein, who operates Qualia Coffee Roasters, a small business in Washington DC primarily engaged in online and farmers’ market sales of coffee beans, stated that the tariffs represent just the latest in a series of price increases.
He noted a substantial rise in bean prices following policy changes that impacted support for coffee growers, and he now anticipates further increases.
“We are anticipating a decline in sales,” Mr. Finkelstein concluded.