Tariffs could brew trouble for Americans' daily cup of coffee
Summary
New tariffs on Brazilian coffee imports could significantly increase the cost of coffee in the United States, impacting retailers and consumers alike.
Key Points
- Coffee prices in the U.S. rose 14.5% in July year-over-year before the imposition of a 50% tariff on Brazilian coffee.
- The U.S. consumes over 3 billion pounds of coffee annually and relies heavily on imports as domestic production is less than 1%.
- Small roasters like Coffee Bros and major brands such as Starbucks and J.M. Smucker face cost pressures due to tariffs on coffee and related packaging materials.
- Finding alternatives to Brazilian coffee to maintain consistent flavor profiles is difficult and risks consumer dissatisfaction.
