Coffee Prices Surge Amid Tariff Impact on U.S. Imports

NEW YORK, NY — Coffee prices in the United States rose sharply in August, jumping nearly 21% compared to the same month last year. This marks the largest annual increase since October 1997, according to the latest Consumer Price Index released on Thursday.

The prices for coffee also rose 4% month-over-month, the most significant increase in 14 years. Experts attribute part of this surge to tariffs imposed by the Trump administration on imported goods, particularly affecting Brazil, the nation’s top coffee source.

Diane Swonk, chief economist at KPMG, warned that coffee prices “will easily exceed the record” levels as the effects of a 50% tariff on Brazilian imports make their way to store shelves.

Currently, the United States imports nearly all of its coffee, with 99% sourced from abroad. Countries like Brazil, Colombia, and Vietnam have faced significant tariffs, with Brazil bearing one of the highest at 50% due to political tensions with the United States.

Many coffee retailers, both large brands and small cafés, have struggled to absorb the rising costs. J.M. Smucker’s, the company behind Folgers and Café Bustelo, announced price hikes earlier this year and plans to implement more increases this winter.

In New Orleans, local café “French Truck Coffee” has added fees to orders to manage increased coffee bean prices. Meanwhile, Starbucks has indicated they may see delayed impacts from the tariffs, projecting that higher costs will not peak until 2026.