US Coffee Shops Face Price Surge Due to New Tariffs

Coffee lovers in the United States can expect a steep price rise in their daily cup as recent tariffs on imported coffee beans take effect, squeezing local businesses and altering consumer habits.

The cost of coffee in the US is on the rise, with recent tariffs set to impact local cafés and their patrons significantly. The imposition of a 10% tariff on most coffee imports, effective since April 5, has already led to price increases at establishments across the nation. This increase in costs comes at a time when Americans, who spend around $100 billion annually on coffee, are also feeling the pinch of inflation.

Jorge Prudencio, owner of Bread Bite Bakery in Washington DC, shared that his Colombian coffee supplier has just raised prices due to the new tariffs. He is bracing for mandatory price hikes at his bakery to maintain profitability. "Of course, I’m worried," he stated when asked about the looming changes.

Similarly, Kamal Mortada, manager of the Au Lait café, has reported a downturn in customer numbers as coffee prices continue to climb. With inflation at a 40-year high, many customers are now opting for simpler coffee choices rather than extravagant beverages. Mortada confirmed that menu prices have surged by 25%, which prompted some patrons to switch to brewing coffee at home instead.

On the West Coast, San Francisco's Jenny Ngo of Telescope Coffee is confronting uncertain price adjustments from her suppliers, which include beans from Ethiopia and Guatemala that are also subject to tariffs. She indicated a need to raise prices further to keep her business afloat, stating, "We unfortunately project to raise prices again."

Despite these challenges, some business owners, including Prudencio, remain optimistic that their loyal customers will continue supporting them due to the essential nature of coffee. However, the price of other ingredients, like eggs, has also increased drastically, complicating operations for bakeries reliant on multiple components.

Joel Finkelstein of Qualia Coffee Roasters, which primarily sells beans online, highlighted that the price hikes from tariffs will compound existing increases initiated during the previous administration. He anticipates a drop in sales resulting from rising costs, as customers tighten their budgets in response to inflation.

The looming price adjustments for coffee reflect broader economic challenges and consumer spending habits that could reshape the coffee culture in the US significantly.