A bitter price hike in US coffee shops after tariffs

BBC:

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.

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.

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.

Speaking to the BBC, Mr Prudencio said his coffee suppliers have told him his next order will carry yet another price hike.

He added that his bakery will “definitely” be increasing prices for customers just to break even.

Asked if he is worried, Mr Prudencio said: “Of course.”

The manager of Au Lait café just down the street, Kamal Mortada, said he’s been seeing the effect of steadily increasing prices for a while now. Inflation spiked to a 40-year high under former US President Joe Biden.

Before the tariffs kicked in, ground coffee reached the highest ever recorded price in March 2025, and was over a dollar more expensive than the previous year, and $3 above March 2020 prices.

“We have less customers for coffee,” Mr Mortada said.