Coffee Prices Surge in US Due to Tariffs as Consumers Adjust Spending Habits

As tariffs take hold and costs rise, local coffee businesses are reporting declining customers and adapting to new financial realities.

A wave of price hikes is hitting US coffee shops following the introduction of a 10% tariff on coffee imports, with café owners voicing concerns over dwindling customer numbers. The new tariffs took effect on April 5, causing coffee providers to announce price increases that have caught the attention of consumers who are now tightening their budgets.

Coffee is a significant industry in the US, with Americans spending around $100 billion annually. However, many coffee enthusiasts are feeling the pinch as popular morning beverages become more expensive, dissuading them from their usual purchases. Jorge Prudencio, who runs the Bread Bite Bakery in Washington D.C., has experienced a surge in costs after his Colombian coffee supplier raised prices due to the new tariffs. He indicated that his bakery may have to increase prices for their customers just to maintain profitability.

Kamal Mortada, the manager of Au Lait café, noted that he has already seen a decline in sales as his menu prices have climbed by 25%. He reported that many customers are opting for simpler coffee orders to save money, a trend that reflects a broader change in consumer behavior. "We have less customers for coffee," Mortada explained, revealing his own shift towards making coffee at home instead of visiting popular chains like Starbucks.

On the West Coast, Jenny Ngo, owner of Telescope Coffee in San Francisco, is also bracing for price increases due to the tariffs that impact her coffee sourced from Ethiopia and Guatemala. She highlighted an immediate jump in costs for her iced coffee cups imported from China, signaling the broad impact of tariffs on multiple aspects of her supply chain.

The price surge isn't limited to coffee; inflation has hit various essentials hard, including eggs, which are critical for many bakery products. Prudencio detailed how the cost of eggs more than doubled within a short period, emphasizing that these escalating prices affect everyone in the industry.

Overall, small business owners like Joel Finkelstein of Qualia Coffee Roasters, who primarily sells coffee beans online, are bracing for further challenges ahead. "We are going to see a decrease in sales," he predicted, underlining the ongoing impact of tariffs on both suppliers and consumers alike. As coffee prices continue to rise, many in the industry wonder how they will adapt to the changing landscape.