Trump Tariffs Sow Trouble for Local Roasters

Rising coffee bean prices are keeping roasters and their customers on edge.

Coffee retail price sautéed nearly 21% in August compared to the same period last year, and the Trump administration prices are partly responsible: in July, Brazil was imposed one of the highest customs duties, at 50%while Vietnam has Rates 20% and Colombia has rates of 10%.

America imports more than 99% of its coffeeaccording to the National Coffee Association. The bulk comes from Brazil — 30.7 percent of U.S. coffee imports by net weight, according to the U.N. Comtrade database — Colombia (18.3 percent) and Vietnam (6.6 percent).

The average price of regular coffee in restaurants in August was 10 cents more than the same period last year, according to data from Toast, a restaurant management software provider. The increase brought the average price to $3.52.

Some relief may be on the way. In September, Rep. Don Bacon, Republican of Nebraska, and Democratic Rep. Ro Khanna of California, introduced the bipartisan “No Coffee Tax Act” to exempt coffee products from tariffs.

Price increases may encourage some consumers to start brewing their coffee at home, but they will likely continue to purchase cups from local stores as an occasional treat.

“(Consumers) may switch brands, or they may make purchases, or perhaps lower the quality — or what they perceive as a level of quality — in order to save a little money,” said Erin McLaughlin, senior economist at the Conference Board, a nonprofit research group.

Coffee drinkers in the nation’s capital see drip coffee more expensive and espressos these days. According to Toast data, a regular hot coffee in Washington, D.C., cost an average of $4.21 in August, up 4% from last year. And the the average price of a cold brew costs $5.35, up 3.7% over one year.

Swing’s Coffee Roasters, founded in 1916 with three locations in Virginia and Washington, D.C., was faced with higher costs than usual. Owner Mark Warmuth told CNN that Trump’s tariffs have caused a “really difficult situation across the board” when combined with environmental and labor factors that make coffee more expensive.

“Consumers are the ones paying the bill,” Warmuth said, adding that “the only loser here is the consumer.”

The cost of a single cup could increase by about 10 or 15 cents, Warmuth warned. Even if importing beans costs 50% more, it is unlikely that a single cup would also increase by 50%.

DC coffee drinkers may grimace at the price, but they probably aren’t to give up their caffeine fix.

“(Coffee is) sort of seen as an affordable luxury. Even though the price can range from $3 a cup to $3.50 a cup, that might not be enough in downtown Washington to get someone to change their drinking habits,” he added.

Chris Vigilante, owner of Vigilante Coffee Company, which has two locations in California and Maryland, said that an average pound of coffee left from around $4 has up to $6. And a 12-ounce bag of beans could increase by 50 cents to $1 for customers, he said.

Vigilante imports much of its coffee from Brazil and other beans come from countries like Indonesia, Ethiopia and Colombia. In the middle of federal layoffs and other pressures affecting Washington, D.C. residents, he said, Vigilante Coffee Company considered importing coffee from other countries to “diversify our offerings and maintain certain price levels for our customer base.”

Despite the price increases, Vigilante said he was optimistic that there are still ways “people can continue to enjoy great specialty coffee (that) fits their wallet.”

The 50% tariffs imposed on Brazil, the largest U.S. exporter, whose supply of coffee beans has declined due to a drought, are taking the biggest toll on businesses.

Doug Ilg, owner of Celtic Cup Coffee Roasting in Silver Spring, Maryland, has avoided Brazilian coffee because of the huge tariffs. It does not import coffee itself, but mainly sources from third parties and has seen an increase in costs over the past eight months.

Trump’s tariffs “definitely changed things,” Ilg said.

For example, customers could now pay about 63 cents more per pound of beans compared to January because of the added cost of tariffs this year, he said.

The added costs also put increased pressure on small and medium-sized businesses to invest more upfront, said the Conference Board’s McLaughlin.

Joel Finkelstein, owner of Qualia Coffee, which sells at farmers’ markets around Washington, D.C., said it’s “really difficult” to anticipate where his business will be in a year or two because of factors such as uncertainty over pricing.

“Every small business, unless they’re in a very fortunate position, is constantly evaluating whether it makes sense to stay open,” Finkelstein said.