The ravages and consequences of the tariffs imposed by the Trump administration on practically the rest of the planet are increasingly affecting citizens. Now it is coffee’s turn, which has become almost a luxury product in the United States, reaching a value never seen before. In just one month, the price increased by 3%, from $8.87 to $9.14 per pound. According to the US Department of Labor (DOL), consumer prices for food for domestic use rose 3% in September and 19% since 2024. Many business owners, such as Nikki Bravo, co-owner of Momentum Coffee in Chicago, have been forced to raise the price of their products, in her case by up to 15%.
The problem is that Trump has devoted himself to imposing tariffs on all imported products without stopping to think that many of them cannot be produced in the United States. In addition, the percentage of these tariffs is also set based on the country’s relationship with the authorities in question, as was the case with Brazil, which accounts for 30% of the coffee market in the country. They have a 50% tariff due to their political differences with their president, Luiz Inacio Lula da Silva. The same happened with Colombia, the second largest coffee exporter, and its 10% tariff due to its differences with Gustavo Petro.
As the third largest exporter, the United States has Vietnam, which has a 20% tariff. Coffee production is not only affected by tariffs or the consumer price index (CPI), but also by the consequences of climate change. According to the Food and Agriculture Organization of the United Nations (FAO), adverse conditions such as heat and drought have caused a 40% increase in world coffee prices. In addition, the announcement by the National Oceanic and Atmospheric Administration (NOAA) about natural phenomena that could cause droughts in Brazil, such as La Niña, also influenced the price.
In response to this situation, a bipartisan group of congressmen has introduced a bill that aims to reduce coffee tariffs. It has been put forward by California Democrat Ro Khanna together with Nebraska Republican Representative Don Bacon. Both hope that, based on the logical premise that coffee cannot be grown in the United States, the Senate and Congress will pass this bill.
Coffee in the United States
Having a reasonably priced cup of coffee in the United States is mission impossible. Compared to 2024, the price of coffee has risen by 41%, reaching historic highs. The average price of a pound of ground coffee rose 3% in a single month, from $8.87 to $9.14. According to the U.S. Department of Labor (DOL), “Consumer prices for food purchased for home and away-from-home consumption rose 3% in September compared to the same month last year”.
This increase is mainly due to the tariff policy imposed by the Trump administration, which has caused establishments such as Nikki Bravo’s Bomentum Coffee in Chicago to raise their prices by 15% because they could no longer sustain the impact of these tariffs. “At some point, we had to pass on the cost increase; we couldn’t keep absorbing it,” Bravo said.
Tariffs on key countries
Although it is clear that Trump’s tariffs affect many other products, coffee is one of the most affected. Coffee production does not take place in the United States, but is a product that is 99% imported, according to the National Coffee Association. The problem is further exacerbated when the percentage of tariffs is set based on Trump’s relationships with the leaders of supplier countries. This is the case with Brazil, the main coffee supplier, which supplies 30% of the market. It currently faces 50% tariffs due to political differences between Trump and Luiz Inacio Lula da Silva.
Faced with this situation, Brazilian producers have begun to hold back shipments to the US while negotiating with US roasters on how to fairly absorb the additional cost. The second largest coffee exporter, Colombia, also faces a 10% tariff due to differences with President Gustavo Petro, and an increase cannot be ruled out. Vietnam, the third largest exporter, has been dealing with a 20% tariff since the summer. In what appears to be a hint of a step back, Trump announced that “unavailable natural resources” could be exempt from tariffs for countries that have reached trade agreements with the US. But so far, coffee has not been considered.
Impact of climate change
In addition to the consequences of tariffs and the consumer price index (CPI), another factor affecting the coffee industry is climate change. The price of production has increased in recent years due to adverse phenomena such as extreme heat and droughts, which have increased the price by up to 40%, according to the Food and Agriculture Organization of the United Nations (FAO). In addition, the announcement by the National Oceanic and Atmospheric Administration (NOAA) about the possibility of adverse conditions such as the La Niña phenomenon in Brazil also led to an increase in price. Although some researchers are studying the production of a more heat-resistant type of coffee, that would not be the solution.
Possible solution
That is why a bipartisan group of congressmen introduced a bill that seeks to repeal all tariffs on coffee. Led by Ro Khanna, a Democrat from California, and U.S. Representative Don Bacon, a Republican from Nebraska, a bill was introduced that aims to end these tariffs on coffee: “We only produce 1% of the coffee consumed by Americans. It is one of the best examples of the economic nonsense of Trump’s widespread tariffs.“ Both hope that the bill will move forward with the support of Congress and the Senate, and Bacon said, ”I hope the president and Congress see the positive benefit that eliminating this tariff will have for ordinary Americans.”