Finance

Coffee Crisis: How Tariffs Are Squeezing U.S. Cafés and Consumers

2025-04-11

Author: Jacob

The Rising Cost of Your Daily Brew

Brace yourselves, coffee lovers! The price of your favorite caffeine fix in the U.S. is about to rise steeply due to new tariffs that are shaking up the coffee shop scene. These recent changes are forcing both café owners and consumers to tighten their belts.

Tariffs Bite Hard

With the implementation of a 10% tariff on imported coffee as of April 5, business owners are feeling the crunch. Jorge Prudencio, who operates the Bread Bite Bakery in Washington D.C., reports that his Colombian coffee supplier has already increased prices in response to the tariffs. As a result, he’s faced with the tough decision to raise prices for his customers just to stay afloat.

Diminishing Coffee Lines

The impact of these tariffs is evident; many cafés are witnessing shorter lines as consumers adjust their spending habits. Kamal Mortada, manager of Au Lait café, noted that his menu prices have surged by 25%, leading customers to opt for plain coffee over fancier, pricier options. As inflation hits a 40-year high, it seems people are choosing quality over quantity.

A Nationwide Issue

On the West Coast, Jenny Ngo of Telescope Coffee in San Francisco is also bracing for inevitable price hikes. With her coffee sourced from Ethiopia and Guatemala—both subject to tariffs—she has already seen her supply costs escalate. The economic ripple effect is forcing many coffee shops to ponder further price increases to navigate this financial storm.

Egg Prices Soar Too!

But it’s not just coffee that’s feeling the heat. The price of eggs, a staple for many bakeries, has skyrocketed, with cases jumping from $42 to over $100 in a matter of weeks. This surge has been a hot topic in political discourse, with former President Donald Trump blaming the current administration for the soaring costs.

Will Customers Continue to Caffeinate?

Despite these challenges, some owners like Prudencio remain hopeful. Coffee, he believes, is a necessity that will keep customers coming through the door. However, as prices continue to soar, it raises a pressing question: how much are we willing to pay for that essential morning cup?

Conclusion: A Bitter Brew Ahead

With escalating prices and changing consumer habits, the coffee scene in America is at a crossroads. As tariffs and inflation wreak havoc on both supplies and costs, one thing is for certain: the days of cheap coffee may soon be behind us.