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U.S. Coffee Prices Jump Most Since 1997 After Tariffs Take Effect

Tariff hikes atop drought-driven shortages are now feeding directly into retail prices.

Overview

  • August CPI shows coffee up 20.9% year over year, with a 4% monthly rise that is the fastest in 14 years.
  • The average retail price for 100% ground roast coffee reached $8.87 per pound in August, up from $7.02 in January.
  • The U.S. imposed steep new tariffs in August, including 50% on Brazilian coffee, 39% on Switzerland, 35% on some Canadian goods, 20% on Vietnam and 10% on Colombia.
  • U.S. imports from Brazil plunged more than 80% year over year in late July and early August, according to shipping tracker Vizion.
  • Roasters and cafes are beginning to pass through costs, with J.M. Smucker signaling another hike this winter and some shops adding surcharges, while Starbucks expects tariff impacts to peak in 2026 due to purchasing lags.