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Saturday, January 4, 2025

COFFEE BEANS & BEINGS / OMG, TARIFF THREATS ON COFFEE, WHAT NEXT?


GUEST BLOG / Based on United Baristas research
--Coffee connects the world in surprising ways, but the journey from crop to cup is fragile, with supply chains running on razor-thin margins. As the U.S. prepares for a potential second Trump presidency, the specialty coffee industry faces fresh challenges, from trade tensions and climate change to unpredictable foreign policies. It’s a complex landscape for an industry that depends on stability—but flaming orangeman doesn’t drink coffee. 

Global Supply and Stability 

The coffee supply chain is long and vulnerable. Conflicts in coffee-growing regions, such as Yemen, can disrupt production and shipping. A more isolationist U.S. foreign policy may heighten regional instability, further complicating sourcing. Farmers and businesses must prepare for more unpredictable disruptions. 

Tariffs and Trade 

Higher tariffs on imports, a Trump campaign focus, could affect the cost of coffee-making equipment, much of which relies on Chinese components. This ripple effect could reshape global trade, impact consumer prices, and increase competition in emerging coffee markets like China. Businesses should brace for a shift in international trade dynamics. 

Economic Uncertainty 

Disruptions often lead to higher costs for businesses, which eventually reach consumers. Strains on public finances—such as reduced U.S. support for Ukraine or domestic economic pressures—could keep inflation high, impacting household budgets and consumer spending. Coffee businesses need to balance pricing and value to retain customer loyalty. 

Climate Challenges 

Climate change remains a long-term threat to coffee. Without U.S. leadership in reducing emissions, global efforts will stall, leaving producers to adapt to rising temperatures, shifting growing conditions, and the need for climate-resistant coffee varieties. The industry must act now to ensure its future. 

Staying Agile and Connected 

Specialty coffee thrives on quality and relationships, from farmers to consumers. During uncertain times, the industry should double down on transparency, collaboration, and innovation. Supporting growers, fostering customer loyalty, and sharing resources will help smaller businesses navigate challenges and even uncover new opportunities. The road ahead may be rocky, but coffee has always been more than a drink—it’s a moment of normalcy in uncertain times. By staying adaptable and committed to its core values, the specialty coffee industry can weather the storm and continue to serve the simple joy of a great cup of coffee. 



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