Coffee shops across Asheville, North Carolina, are preparing for a significant rise in prices as a new 50% US tariff on Brazilian coffee beans is set to take effect on August 6. The tariff, announced by the Trump administration on Wednesday, targets a wide range of Brazilian imports and is expected to impact small businesses that rely on Brazilian coffee for their daily operations.
Tariff hikes threaten to disrupt the supply of Brazilian coffee beans in the U.S.
The tariffs are part of a broader trade policy shift that imposes new duties on imports from nearly 40 countries, with Brazil facing some of the steepest penalties. According to the media, the Trump administration has justified the move as a response to what it calls a “witch hunt” against former Brazilian President Jair Bolsonaro. The decision has sent ripples through the U.S. coffee market, where Brazil supplies roughly one-third of the nation’s coffee consumption.
The US tariffs come at a time when global coffee prices are already under pressure due to climate-related disruptions. Droughts in Brazil and Vietnam have led to reduced harvests, pushing coffee prices to historic highs earlier this year. Francisco Martin-Rayo, CEO of Helios AI, noted that even a modest 10% tariff can increase U.S. retail coffee prices by up to 8% within three months. With the new 50% tariff, those price hikes are expected to be far more severe.
Brazilian coffee tariffs set to pressure local supply chains
Other coffee-producing countries and products are also being affected by the trade policy changes. Swiss chocolate and coffee imports now face a 39% tariff, impacting brands like Nespresso. However, Brazilian orange juice was notably exempted from the tariff list, a decision that industry analysts say is aimed at limiting price shocks on essential consumer goods.
In response to the volatile market, some coffee shop owners are taking proactive measures. In Perry, Georgia, Morning by Morning Coffee owner Beth Cleveland has stockpiled around 15,000 pounds of coffee beans ahead of the tariff implementation. “Your cup of coffee may double,” Cleveland warned, as she navigates the dual challenges of rising bean prices and additional tariffs on essential supplies like cups and lids.
While the US tariffs aim to bolster American trade leverage, the immediate consequence for small coffee businesses is a squeeze on profit margins. With consumers likely to feel the effects at the register, local cafés are preparing for a challenging period ahead. – By Content Syndication Services.