Coffee Prices See Highest Jump Since 1997 – CoffeeTalk

Coffee prices in the United States have surged nearly 21% in August, the largest annual jump since October 1997, according to the latest Consumer Price Index. On a monthly basis, coffee prices rose 4%, the most in 14 years. The US is the largest importer of coffee in the world and relies on foreign countries for the beans, as there are few places it can grow domestically. Brazil is one of the most heavily-tariffed countries, with Brazilian imports facing 50% tariffs, among the highest that the US levies on any country’s goods, due to Trump’s anger over the trial and recent conviction of former President Jair Bolsonaro, a Trump ally.

Chair economist Diane Swonk predicts coffee prices will easily exceed the record as the full effects of the 50% tariffs levied on Brazil last month work their way onto store shelves. Other coffee bean-growing countries are also being slammed with tariffs, with Colombia having a 10% tariff and Vietnam having a 20% tariff.

Big brands and small shops have been trying to absorb the costs, but consumers’ luck with prices appears to have run out. J.M. Smucker’s is likely to hike coffee prices of its retail coffee products for the third time this winter. French Truck Coffee in New Orleans has added a 4% tariff surcharge on orders to offset the rising prices. Starbucks is a holdout for now, as its buying practices cause coffee tariff impacts to lag the market, with year-over-year coffee cost increases expected to peak in 2026.

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