The price for a cup of coffee in the US is going up as tariffs put the squeeze on local café and bakery owners. Some US businesses say the queues for a morning latte are already getting shorter as customers tighten their belts and imported beans become more expensive. Americans spend $100bn (£76bn) a year on coffee, though that might be about to change.
The vast majority of coffee in the US is imported. In fact, the US is the world’s second-leading importer of coffee, with the majority coming from Brazil and Colombia, according to the US Department of Agriculture. Since 5 April, coffee imports have been affected by the 10% US tariffs against most countries.
Jorge Prudencio, who runs Bread Bite Bakery in Washington DC, says his Colombia-based coffee distributer just increased prices after the sweeping tariffs went into effect last week. He added that his bakery will “definitely” be increasing prices for customers just to break even.
The prices on the menu have gone up by 25% and people are now buying smaller coffees. Kamal Mortada, the manager of Au Lait café, said, “We have less customers for coffee.” “Most customers just get plain coffee,” instead of adding syrups and milks, he said.
Jenny Ngo, who runs Telescope Coffee in San Francisco, said she was waiting to hear how much her roaster will hike prices. The coffee she sells is sourced from Ethiopia and Guatemala, both facing the standard 10% tariff. She also imports her iced coffee cups from China – and said she noticed the prices on those jumped overnight.
The price of eggs is also affected, crucial to Mr Prudencio’s bakery side of the business. He said they paid $42 per case when the bakery opened five months ago, but two weeks later it was more than $100 per case.
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