How Tariffs Could Affect Your Coffee Budget

How Tariffs Could Affect Your Coffee Budget

The tariffs announced in April 2025 could significantly increase consumer prices and disrupt established supply chains. That could mean price hikes on a great many coffee imports, which would be passed along to consumers. 

Coffee from most countries is currently subject to a 10% tariff, with the exception of Mexico. Many exporters in Mexico qualify for an exemption under the USMCA trade agreement (the successor to NAFTA). However, it's possible that higher demand for Mexican coffee will give producers more leverage, and those prices will rise as well.

Good Earth Roasters purchases coffee from wholesalers, who directly or indirectly import coffee from many countries in the "reciprocal tariffs" list. Those tariffs must be reflected  in the wholesalers' product cost, in order to ensure their business continuity. We as a buyer will be paying more for our raw coffee beans, as will you, dear consumer.

Additionally, the White House as announced fees on Chinese-built shipping vessels, which would increase freight rates and logistics cost.

The primary hope for tariffs - as I hear it - is that it will re-ignite U.S. manufacturing. Well, although small amounts of coffee are grown in regions like Hawaii and Puerto Rico, that accounts for less than 0.01% of what Americans consume. The U.S. simply cannot grow enough coffee to meet the need, ever.

There are several points of good news, though.

1. Our prices aren't changing right now. We (and our importers) have a current supply of raw beans purchased before tariffs were changed. Until those supplies run out, we won't be changing prices. I don't expect to re-order until late summer at the earliest.

2. The National Coffee Association has formally requested that coffee be exempted from tariffs entirely, arguing "there is no alternative to imported coffee, unlike other cases where tariffs may address unfair practices or incentivize domestic producers." We sincerely hope this request is granted, for all our sakes!

We will continue to monitor the situation, and keep you posted well in advance of any pricing changes on our end.

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