One Coffee Shop is Offering 25-cent Discounts on Drinks as a Refund to Customers for Duties Collected Due to Tariffs – CoffeeTalk

The Crown, a coffee tasting room in Oakland, is temporarily offering a 25-cent discount on its drinks to refund customers for a portion of the duties its parent company, Royal Coffee, owed due to tariffs imposed by the Trump administration. As part of a major policy, the U.S. Supreme Court facilitated refunds after striking down these tariffs, which had significantly impacted coffee prices across the country. The Crown estimates it will return around $2,500 to customers over the next 60 days.

Royal Coffee, which imports specialty coffee from over 30 countries, had faced tariffs ranging from 10% to 50% on coffee lots purchased between April and November 2025. These tariffs affected consumer prices almost immediately as costs were passed down the supply chain from importers to roasters and finally to consumers.

Despite tariffs being removed in November, immediate price reductions were not feasible, as older inventory with inflated prices circulated longer. Concurrently, Royal Coffee has partially received refunds for 927 coffee lots and is awaiting additional refunds for 1,044 lots. These refunds are being credited to roasters for future purchases, with credits ranging from $2,000 to over $20,000.

Other coffee firms, like Relevant Coffee and Red Fox Coffee Merchants, are also considering passing on tariff refunds through discounts, though many remain in the “planning phase.” While the refunds provide some relief, they do not compensate for additional expenses incurred due to evolving tariff regulations, including fees for customs brokers, heightened insurance costs, and increased labor.

Despite the temporary discount at the Crown, other factors are driving coffee prices up, such as the ongoing U.S. war with Iran, which has impacted shipping routes, alongside climate change effects like El Niño that could lead to price hikes by as much as 30%. Royal Coffee’s director, Chris Kornman, emphasized that the entire supply chain continues to grapple with rising costs as they seek sustainable practices amidst these challenges.

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