Coffee Prices Expected To Spike As Tariff Uncertainty Throws Market Into Chaos – CoffeeTalk
Coffee prices have nearly doubled in the last six months due to tariffs, adding uncertainty for roasters and importers. House of Coffee Beans, a coffee roaster with about 16 different-origin coffees, has experienced a 2.5-fold increase in the base coffee commodity trading price. The New York Coffee Exchanges prices are slowly dropping, but with talk of tariffs, they are not expecting a big break. Indonesia is expected to see a 36% increase, Mexico from 10 to 25, and India’s popular coffee from India at 28%.
Xela Coffee Roasters is also facing concerns due to tariffs on Guatemala, one of the Central American countries. Benji Aguilar, the owner of Xela, says its flagship coffee comes from Guatemala, which is seeing 10% tariffs. He calls importers and farmers the front line and is looking to them for the next move after what they already have locked in.
Xela is locked in a contract that will keep prices flat for the rest of the year, but some may soon pass the increase to customers. Both Aguilar and Jordan believe that coffee is just one of many markets impacted by tariffs, and its price many will willingly pay.
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Source: Coffee Talk