Record-high coffee prices poised to keep rising on upcoming Brazil tariffs
Anyone who relies on a morning cup of coffee will have noticed how much their caffeine kick has been setting them back of late.
Now, as the Trump administration prepares to impose a 50% tariff on imports from Brazil to the US from August 1, people may have to fork out even more.
Coffee prices have recently surged to an all-time high, hitting $7.93 per pound of ground roast coffee in May — up from $5.99 in the same period last year, according to Bureau of Labor Statistics data first reported by The New York Times.
The tariffs, announced on Wednesday, could see the world’s largest coffee grower halt new shipments to the world’s largest coffee drinker altogether if enacted. Per Reuters, the US imported more than 8.1 million 60-kilogram bags — one-third of its total consumption — of the product from Brazil last year.
With coffee supplies already tightening as droughts have squeezed harvests, wholesale costs could rise as much as 50% if these tariffs take effect, the Times reported, which could translate to a price hike of $0.25 a cup.
It’s worth noting that coffee drinkers have had it pretty good for years. In fact, adjusted for inflation, the price of coffee hasn’t gone up that much relative to other stuff. Using the BLS’s Inflation Calculator, had coffee tracked the wider rate of inflation over the last 45 years, the $3.21 per pound that we paid back in 1980 would actually be closer to $13 per pound today.
Coffee prices have recently surged to an all-time high, hitting $7.93 per pound of ground roast coffee in May — up from $5.99 in the same period last year, according to Bureau of Labor Statistics data first reported by The New York Times.
The tariffs, announced on Wednesday, could see the world’s largest coffee grower halt new shipments to the world’s largest coffee drinker altogether if enacted. Per Reuters, the US imported more than 8.1 million 60-kilogram bags — one-third of its total consumption — of the product from Brazil last year.
With coffee supplies already tightening as droughts have squeezed harvests, wholesale costs could rise as much as 50% if these tariffs take effect, the Times reported, which could translate to a price hike of $0.25 a cup.
It’s worth noting that coffee drinkers have had it pretty good for years. In fact, adjusted for inflation, the price of coffee hasn’t gone up that much relative to other stuff. Using the BLS’s Inflation Calculator, had coffee tracked the wider rate of inflation over the last 45 years, the $3.21 per pound that we paid back in 1980 would actually be closer to $13 per pound today.
