Coffee Roasters Face Crisis Amid Rising Prices and Tariffs

Baltimore, Maryland – Casey McKeel, owner of Thread Coffee, is feeling the pressure as rising coffee prices hit roasters across the U.S. In August, coffee prices soared nearly 21% compared to last year, driven by tariffs on imports and poor harvests in coffee-producing regions.

Many specialty coffee shops, including Thread, are struggling to maintain their business models without compromising their ethical sourcing efforts. “Each day I worry about losing our customers due to the shock from price increases,” said Nani Ferreira-Mathews, Thread’s marketing director.

The tariffs, implemented by President Donald Trump‘s administration, increased taxes on Brazilian coffee imports from 10% to 50% starting August 6. Countries like Vietnam and Indonesia also saw significant tariff increases of 20% and 19%, respectively. While U.S. lawmakers have proposed the “No Coffee Tax Act” to eliminate these tariffs, the timeline for any changes remains uncertain.

Ed Canty, general manager for Cooperative Coffees, which supplies Thread Coffee and other roasters, stated, “We saw the highest market we’ve seen in 30 years earlier this year, then tariffs hit us hard.” Cooperatives like Canty’s have been burdened by approximately $1 million in tariffs, making it difficult to sell existing inventory at competitive prices.

For Stan Constantine, the president of Baltimore Coffee and Tea Co., rising bean prices have been deeply personal. Family ties to coffee production date back to the 1800s, with a reliance on Brazilian imports for over a third of his supply. “It’s frustrating because the situation is avoidable,” he expressed, citing a jump in import costs from $2.20 to $4.30 per pound.

At Good Neighbor, a local coffee shop in Hampden, manager Rida Shahbaz reports that switching to Indonesian coffee as a cheaper alternative has had mixed results. The rising import cost and variability in quality are forcing him to reassess menu prices regularly.

Adee’s Coffee Roasters owner Ayda Abraham has already raised prices and is concerned about doing so again. Lack of Brazilian beans has led her to blend alternatives from Guatemala and St. Helens, which are also climbing in price. “It’s not just coffee that is getting more expensive; everything is almost doubling,” she said.

In the midst of uncertainty, Ferreira-Mathews and McKeel pondered moving towards lower-quality beans to mitigate expenses. However, Ferreira-Mathews firmly stated, “I’d rather lose my business doing the right thing than save it doing the wrong thing.” With the coffee industry under siege from tariffs and supply chain issues, many local businesses face a future undefined by challenges.