COFFEE BEANS & BEINGS /TARIFFS COULD ADD 75 CENTS TO A $3 CUP OF COFFEE

This month's staff favorite: Classic architectural readaption of existing structure: Starbuck's, Dupont Circle, Washington DC.

GUEST BLOG / PillartoPost.org/ChatGPT4o--The recent implementation of tariffs under President Trump's administration is poised to significantly impact the cost of a single cup of coffee in the United States. These tariffs, part of a broader trade policy shift, introduce new financial pressures across the coffee supply chain, from importers to consumers. 

 ☕ The Tariff Breakdown As of April 2025, the U.S. has imposed a 10% base tariff on coffee imports, with higher rates for specific countries:

 • Vietnam: 46% 

• Indonesia: 32% 

• India: 26% 

• China: 54% (primarily affecting packaging materials). 

These tariffs are particularly impactful given that the U.S. imports approximately 99% of its coffee, with major suppliers including Brazil, Colombia, Vietnam, and Indonesia .

 💸 From Bean to Brew: Cost Implications The added tariffs increase the cost of imported coffee beans, which, in turn, affects the retail price of coffee beverages. For instance, a coffee shop owner in Westminster, Colorado, anticipates a 25% increase in costs, translating to an additional 75 cents on a $3 cup of coffee. 

Similarly, in Colorado Springs, coffee businesses are raising prices by approximately 11% to offset the increased costs associated with the tariffs .

 🌍 Global Factors: Amplify the Impact Beyond tariffs, global issues such as climate change are exacerbating coffee price increases. Droughts in key coffee-producing countries like Brazil and Vietnam have led to reduced output, further driving up prices 

📈 Consumer Price Projections: The combination of tariffs and global supply challenges suggests that consumers can expect to pay more for their daily coffee. Estimates indicate that the price of coffee from Brazil could rise from $8.30 to $9.13 per pound due to the 10% tariff  

🛍️ Broader Economic Implications: These tariffs are not limited to coffee alone; they are part of a wider trade policy affecting various imported goods. The increased costs may lead to reduced product variety and higher prices across multiple sectors.

 🏁 Final Sip: In summary, the newly imposed tariffs are set to increase the cost of coffee in the U.S., affecting both businesses and consumers. As the situation evolves, it remains to be seen how the industry and consumers will adapt to these changes. Stay tuned.