U.S. Coffee Prices Surge as Trump's Tariffs Strain Industry
Coffee shops nationwide are raising prices or absorbing costs to navigate the financial strain of a 10% tariff on imported beans, intensifying market volatility.
- President Trump's 10% tariffs on imported coffee beans are driving up costs for U.S. coffee shops, with many passing the expense onto consumers.
- Over 99% of the coffee consumed in the United States is imported, leaving the industry highly susceptible to international trade policies.
- Specialty coffee shops, such as The Crown in California, have announced price hikes, while others, like Mad Lab Coffee in Los Angeles, are strategically absorbing costs to maintain customer loyalty.
- The tariffs are exacerbating existing challenges caused by global supply shortages and extreme weather, further tightening profit margins for small businesses.
- The trade measures are also impacting related sectors, including confectionery, as cocoa and other imported goods face similar cost pressures.