CHICAGO / LONDON (IT BOLTWISE) – Coffee prices in the US are rising due to tariffs and adverse weather conditions. The price of a pound of ground coffee reached $9.14 in September, up 3% from August. This development is putting pressure on both consumers and cafés, who are struggling with higher costs for beans and accessories.
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Coffee prices in the US have risen significantly in recent months, driven by both political and climate factors. The average price of a pound of ground coffee reached $9.14 in September, up 3% month-over-month and 41% year-over-year. These price increases put pressure on both consumers and the catering industry, who are faced with higher costs for raw materials and supplies.
A major factor in the price increase is the tariffs on coffee imports imposed by the Trump administration. Brazil, the largest supplier of coffee to the United States, faces a 40% tariff, making supplies significantly more expensive. Colombia and Vietnam, other important suppliers, are also affected by tariffs. These trade barriers lead to a shortage of supply and drive up prices.
In addition to tariffs, adverse weather conditions have affected coffee production worldwide. Heat and drought, exacerbated by the La Niña climate phenomenon, have reduced harvests in Brazil and other growing countries. These climatic challenges increase production costs and contribute to price increases.
In response to rising costs, some coffee shops, like Chicago-based Momentum Coffee, have increased the prices of their drinks. Owner Nikki Bravo reports that she pays 15% more for coffee beans and is forced to pass that cost on to customers. At the same time, the costs of other materials such as cups and sleeves are also increasing, further increasing the financial burden.
To defuse the situation, some members of the US Congress have introduced a bill that would eliminate all coffee tariffs. This initiative aims to reduce the burden on consumers and businesses and mitigate the economic impact of tariffs. Whether this push will be successful remains to be seen, but it shows the growing awareness of the issue of coffee prices.
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