Your morning cup of joe just got a lot more expensive. Retail coffee prices were up almost 21% in August from the year before, according to the Bureau of Labor Statistics.
Tariffs are one of the most significant factors driving this price hike, says CNN. According to data platform Statista, the U.S. is the world's largest importer of coffee. In 2024, the U.S. imported nearly $9 billion worth of coffee beans
The National Coffee Association says that 99% of coffee consumed in the U.S. isn't grown there, as the country falls well outside the climatic zone that produces ideal coffee-growing conditions.
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Those ideal conditions are found in countries like Brazil, Colombia, Ecuador, Kenya, and Indonesia, among others.
U.S. Department of Agriculture data shows that about 80% of all coffee imports come from Brazil and Colombia, which have been hit hard by tariffs under theTrump's administration.
President Donald Trump signed an executive order in July that increased tariffs on Brazilian goods to 50%.
While the effects of that tariff haven't fully hit consumers yet, KPMG Chief Economist and Managing Director Diane Swonk says that when they do, coffee drinkers will be in for an even bigger shock.
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Coffee prices "will easily exceed the record as the full effects of the 50% tariffs levied on Brazil… work their way onto store shelves," she told CNN.
Colombia, the second-largest exporter of coffee beans to the U.S., is currently under a 10% tariff.
Some retailers are passing along the increased costs to consumers. The J.M. Smucker Co. (NYSE:SJM) CEO Mark Smucker said on its Q4 2025 earnings call in June that the company would likely hike prices for its coffee products, which include brands like Café Bustelo, for a third time since the start of the year "due to higher green coffee costs."
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Meanwhile, Starbucks (NASDAQ:SBUX) is hoping to hold off on price increases for a little longer. Chief Financial Officer Catherine R. Smith said on the company's Q3 2025 earnings call in July that "due to our coffee buying and hedging practices," customers shouldn't expect to see price increases until the first half of the 2026 fiscal year.
Still, with 66% of Americans reporting that they drink coffee every day, it's unlikely that retail coffee companies will suffer too much even with the tariff-induced price hikes. Case in point, coffee chain Black Rock Coffee Bar (NASDAQ:BRCB) raised $294.1 million in its initial public offering last week, proving the coffee industry isn't going anywhere anytime soon.
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