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Coffee prices expected to rise due to new tariffs on Brazilian imports

President Trump's proposed tariffs threaten to increase U.S. coffee prices significantly.

July 21, 2025 at 09:00 AM

Coffee prices to spike as Brazil faces 50% tariffs under Trump : NPR

The proposed tariffs on Brazilian coffee imports are expected to impact U.S. consumers and businesses significantly.

Coffee prices face a steep rise as tariffs loom for Brazilian imports

President Trump has announced a 50% tariff on all goods from Brazil, a move that could drastically affect the U.S. coffee market, as Brazil supplies approximately 30% of the nation's coffee. This tariff follows an existing 10% duty on Brazilian imports, which has caused alarm among coffee producers and consumers alike. Industry insiders warn that this increased cost will lead to higher prices for coffee drinks at stores and cafes, ultimately placing the financial burden on American consumers. Some businesses are already feeling the impact of uncertainty regarding these tariffs, with small roasters like Lost Sock exploring options for sourcing beans if prices escalate.

Key Takeaways

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A 50% tariff could severely impact coffee prices in the U.S.

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Brazil is a significant source of coffee, providing 30% of imports.

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Small roasters are particularly vulnerable to these price hikes.

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Consumers are likely to feel the price surge at cafes and stores.

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Long-term relationships with Brazilian producers may be at risk due to tariffs.

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The coffee market's volatility is exacerbated by additional global trade tensions.

"A 50% tariff will kill that market."

This quote from Monica de Bolle emphasizes the potential devastation the tariffs could bring to U.S. coffee markets.

"It's a tax on Americans' mornings."

Colby Barr expresses the burden that the tariffs will place on everyday consumers who enjoy coffee.

"The uncertainty is probably the worst."

Jeff Yerxa highlights how uncertainty over tariff impacts is already damaging for coffee businesses.

"Tariffs don't help the coffee producer or the consumer."

Barr's statement underscores the wide-reaching negative effects of tariffs across the coffee supply chain.

The impending tariffs place a spotlight on the intricate ties between U.S. coffee shops and Brazilian coffee producers. The coffee industry, already grappling with rising prices from climate-related harvest issues, now faces additional challenges from international trade decisions. Import tariffs not only risk further financial strain on small businesses but also threaten to alienate consumers who have established preferences for Brazilian blends. This situation may lead to a shift in purchasing habits, but also reflects broader complications in international trade dynamics, especially in commodity markets.

Highlights

Every morning's brew is at stake with new tariffs looming.
Tariffs are a tax on Americans' favorite morning ritual.
This could price many consumers out of their daily coffee.
We may face a coffee culture shift due to rising costs.

Rising coffee prices amid impending tariffs

The proposed 50% tariffs on Brazilian imports may lead to significant price increases for coffee in the U.S., impacting consumers and small businesses.

The future of coffee pricing will depend on the outcome of these trade policies and potential shifts in sourcing.

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coffee tariffs trade Brazil economy business economy

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