Coffee Shops Across The US Responding To Tariff Whiplash – CoffeeTalk

Coffee shops in the US are raising their prices in response to President Donald Trump’s 10% tariffs. The US has limited coffee production, so beans have to be imported. Some coffee entrepreneurs have told Business Insider that they need to cushion their business against tariff uncertainty. Chris Kornman, the director of education at Royal Coffee, called the situation “an unprecedented crisis” for the industry.

The Crown, a specialty coffee shop owned by Royal Coffee, announced across-the-board price increases, with all drinks costing an additional $0.50 from now on. The Wakery, an Illinois late-night coffeehouse, also announced price hikes due to the tariffs. Local reports indicate that cafés in Austin, Grand Rapids, Michigan, and New Jersey are raising their prices or considering doing so.

The US is the second-largest coffee importer in the world, accounting for about 60% of its coffee supply. Before Trump announced pauses to some of the country-specific increases on Wednesday, Trump’s sweeping “Liberation Day” tariffs varied by country, with a 46% rate for Vietnam and 10% for both Brazil and Colombia. The blanket 10% tariffs remain for all three countries.

Shop owners say tariff whiplash doesn’t help. Royal Coffee scrambled to scale back its Mexican coffee purchases and notify customers that it might charge more for those beans. Now Mexico’s agricultural products aren’t affected. Royal has stopped buying coffee from India in case its tariffs go up to 27%, as Trump initially proposed.

Pierre and Jackie Marquez, who own Tasa Coffee Roasters in Chicago, said they had already bumped up their prices in February because of overall rising costs. If Trump’s reciprocal tariffs go into effect at the end of his 90-day pause, the Marquezes said they would have to increase prices again. Domestic coffee production is largely limited to Hawaii, Puerto Rico, and small parts of California, and the cost of coffee beans was already creeping upward before Trump’s tariffs.

The threat of a global recession makes it unsavory to talk about raising prices when people may not be able to afford a cup of coffee.

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