Local Coffee Roasters Feel the Burn of Tariff Imbalance

Indianapolis coffee roasters are feeling the burn of tariff imbalance, thanks to the Trump administration's on-again-off-again tariffs.

Nearly 99% of the world's coffee is grown outside the U.S., making imports a necessity. Hawaii and Puerto Rico are the only places that can produce coffee domestically.

Tinker Coffee, which runs six cafes across Indianapolis and ships its beans nationwide, has seen coffee prices rise almost 400% since before 2019. Co-founder Stephen Hall says, "It's like a perfect storm of things all at once right now. Obviously, it creates financial pressure. Sadly, that has required us to make some adjustments to our prices at our cafes."

Tinker sources its coffee beans from around the globe, including Nicaragua, where they have a close relationship with their supplier. Vietnam, another major producer, was subject to a 46% tariff before the current 10% rate.

Andrieu Doyle, coffee director at Hubbard & Cravens, says that while tariffs are a concern, it's only a fraction of the other increases in the industry. "We're talking about pennies right to the cost of the liquid inside of the cup," he explains. "If that doubles or triples in cost, and the lid doubles and triples in cost, then all of a sudden we have a shortage."

If larger tariffs kick in after the 90-day pause, both businesses are looking at reevaluating where they get their coffee beans from for some blends.

It's not just coffee beans that are affected – other supplies roasters need to run a storefront may also be impacted. Tinker has already had to shift from a Canadian supplier for cups to an American one, and Hall says their bags of coffee come from Taiwan.

Despite the uncertainty, both Hall and Doyle say they have hope for stability thanks to Indianapolis' strong support for local businesses. "There's a lot of great coffee locally," Hall notes. "Support is very strong not only in coffee, but I think in food and beverage in general."

The National Coffee Association reports that Americans spend nearly $300 million on coffee every day, adding up to roughly $110 billion every year.