Retail coffee prices in the United States increased by 21 percent in August compared to the same period last year. This has been the highest annual increase since October 1997. According to the Consumer Price Index (CPI), on a monthly basis, coffee prices rose by 4 percent. This ratio is the fastest monthly increase in the last 14 years.
Tariff Storm: Brazil is leading
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The US is the country that imports the most coffee in the world. According to the National Coffee Union, 99 percent of the coffee consumed in the country comes from abroad. However, high customs tariffs placed in the Trump period directly affect prices.
According to the US Ministry of Agriculture data, Brazil, the country’s largest coffee supplier. However, 50 percent customs duties are applied to coffee from Brazil. This ratio is one of the highest tariffs of the US in any country. Trump’s decision, former Brazilian President Jair Bolsonaro‘nun trial and prosperity after the anger he said.
Other manufacturers are also on the target
Apart from Brazil, the second largest exporter Colombia is 10 percent and 20 percent of Vietnam is applied to Vietnam.
Large brands and small coffee shops tried to resist for a long time in order not to reflect these increases to the consumer. However, according to experts, these costs are inevitably reflected in prices.
Brands in the preparation of a hike
Folgers and Cafe Bustelo brands, the owner of JM Smucker’s, announced last month that he will raise coffee products for the third time in winter. The company made its first price increase in May and the second in August.
The New Orleans -based “French Truck Coffee” chain began to add a 4 percent “tariff fee ına to all orders to cover increasing costs.
Starbucks takes slow
Starbucks, one of the coffee giants, does not increase prices for now. The company announced in the balance sheet meeting in July that the effect of coffee tariffs is reflected later than the market ”due to their supply methods. According to the company officials, the peak of the annual increase in coffee costs will find 2026.
Source: Newspaper Oxygen
