Wednesday's New Round Of Tariffs Spells Trouble For US Coffee Industry – CoffeeTalk

Trump has announced his latest tariff policies, imposing 10% tariffs on all trading partners and reciprocal tariffs on countries with tariffs on U.S. goods. He declared April 2 as “Liberation Day” to prevent other countries from taking advantage of the U.S., but some economists believe that tariffs could lead to an all-out trade war. Cris DeRitis, Deputy Chief Economist at Moodys Analytics, believes that other countries will respond with their own tariffs when the U.S. imposes these tariffs, potentially leading to tit-for-tat strategies. This outcome could have serious consequences for businesses nationwide, including coffee roasters, who face strain due to limited U.S. coffee production. Coffee roaster Mark Wain, co-founder of Caffe Luxxe, said that the tariffs are adding strain to an already stretched thin industry.

The cost of coffee per pound has more than doubled since last year, partly due to flooding and drought in coffee-growing countries like Brazil. The White House claims that tariffs are an effective tool for achieving economic and strategic objectives. The latest round of tariffs will take effect on April 5, 2025. Some trade goods will not be subjected to these additional 10% tariffs, including copper, pharmaceuticals, semiconductors, lumber, and other minerals not available in the U.S.

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