Even With 90 Day Tariff Pause, Roasters Are Still Having To Raise Prices On Their Coffee – CoffeeTalk

Chicago coffee shops, such as Tasa Coffee Roasters in West Humboldt Park, are facing increased prices due to Trump tariffs that have already led to more expensive beans. Climate change is threatening coffee farms and President Donald Trump’s global trade war is disrupting the market for imported goods. Trump has paused his plan to add even higher tariffs to most countries, stating that over 75 other countries have reached out to cut trade deals after years of “ripping off the U.S.” Tariffs of 125 percent will remain in place for China. However, the tariffs have already hit top coffee-producing countries like Brazil, Colombia, and Ethiopia. Vietnam, the third-largest supplier of coffee to the United States, was hit with 46% tariffs, causing the price of its coffee beans to jump.

The policy doesn’t make an exception for coffee, long considered a product immune to global trade politics. The conditions mean coffee prices are expected to increase, perhaps drastically if the additional tariffs are reinstated. Experts say there has never been a significant tariff rate on coffee before this, leading to rapid purchasing and driving up the price of coffee already. This volatility is leaving small shop owners like Marquez with bigger bills for beans as his suppliers try to get out in front of tariffs.

The increased prices and threat of further increases have some local coffee shops worried about the impact on their businesses. Marquez bought a year’s worth of Colombian coffee last week after Trump announced global tariffs, his attempt to dodge more price hikes. Tasa had to raise prices at the start of the year, and Marquez said it makes it difficult to balance the customer with making the revenue to survive.

The United States’ climate and low elevation make growing coffee a challenge outside of limited farms in Hawaii, Puerto Rico, and parts of California. Coffee growers in the US face limited space to store extra beans in their small coffeeshop, which has limited space to store the extra beans. Customers often don’t understand the need to raise prices due to the uncertainty, and they worry they don’t know how to make this all clear to them.

Phil Sipka, owner of Kusanya Cafe, a community nonprofit that doubles as the only sit-down coffeeshop in Englewood, said he paid $2,000 more than usual for his latest shipment of coffee beans. He expects to pass off higher prices on bags of beans to wholesale clients like grocery stores and restaurants. However, Sipka will try to “ride it out a bit and take more losses ourselves” before upping the price on customers who come through Kusanya’s doors.

The volatility in the commodities markets is already wreaking havoc on the coffee business. After Trump paused tariffs Wednesday, Sipka said he doesn’t get to chose when he buys more pallets; he has to sell this coffee here to recoup enough to buy more. The problem is the volatility in the commodities markets, and it’s not a switch you can turn on and off.

Jesse Iñiguez, owner of Back of the Yards Coffee, said the profit margins for his business are already slim, and tariffs could make it even harder to thrive. Tariffs on coffee beans from Brazil, cinnamon and chocolate from Mexico, and packaging materials from Canada mean he’ll likely have to increase prices. Iñiguez said he hasn’t gotten any tariffs charges yet, but he’s bracing for it to happen “very soon.”

In some way, the tariffs are going to affect everybody’s bottom line, including customers who may not feel up for spending money on coffee in the coming weeks or months if they’re also having to pay more for essentials. Iñiguez said it’s important to support local businesses and the businesses that you love, because their survival depends on the customers.

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