“Made In USA” Coffee Will Never Be Cheaper Than Imported Coffee, No Matter How Many Tariffs Are Imposed – CoffeeTalk

5

In 2025, American consumers faced rising retail prices due to tariffs imposed by the Trump administration on nearly all imported goods. This trend included a significant increase in coffee prices, which are impacted by tariffs on imported coffee that makes up over 99% of coffee consumption in the U.S. Reports indicate that coffee prices surged by 14.5% from July 2024 to July 2025, with further increases of 21.7% reported between August 2024 and August 2025.

Despite these surges in coffee prices, imported coffee remains cheaper than domestically produced coffee, primarily because the United States lacks the capacity to produce enough coffee to meet domestic demand. Coffee can only be cultivated in specific geographic and climatic conditions, which are limited to small areas, mainly in Hawaii. Mike Perry, founder of Klatch Coffee, noted that only a small fraction of the landmass in the U.S. is suitable for growing coffee, resulting in domestic production accounting for less than 1% of the market.

Experts like Chris Motola, a financial analyst, confirmed that the minimal domestic coffee production cannot compete with the vast scale and price of imported coffee. With Hawaii and Puerto Rico being the primary producers of domestic coffee, there are significant limitations on land that prevent them from meeting the high demand for coffee in America. Thus, regardless of how tariffs alter prices, it remains impractical for domestic coffee to replace international imports in the United States. The effects of tariffs, claimed by the Trump regime to be aimed at boosting American businesses, do not extend effectively to the coffee industry.

Read More @ Nasdaq

Source: Coffee Talk

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy