Tariffs Amplify Pressure on Coffee Prices Already on the Rise

Some coffee companies were already feeling the heat long before President Donald Trump's tariffs on foreign goods. Coffee prices had been rising over the past nine months, with some local companies seeing their inventory costs double in just 12 months.

“The coffee industry has been hit hard over the past nine months,” said Jeff Taylor, President of Bird Rock Coffee. “Beginning last September, the C-Market — which is the commodities market that sets the base level pricing for coffee — it started around $2.30 and in the last month it’s been as high as $4.65.”

Taylor warned that the tariffs could be the final blow to a good that's already seen rising prices, with hopes of the C-Market price dropping.

"My inventory for these beans has doubled in 12 months,” said Tom Ryan, Director of Operations and VP of Ryan Bros. Coffee.

Ryan attributed the price increases to previous supply chain issues and a lack of production in other coffee-producing countries before the tariffs were implemented. He predicted that the tariffs would only make things worse, increasing prices by around 10% for Brazilian coffee, or about 30-40 cents per pound.

Ryan said his company would adjust its business as the tariffs play out, potentially running low on inventory and limiting product offerings.

“We’re trying to keep our prices right where they are for the time being. But we reserve the right over the next month or two or three, as our paper goods start running out, to see what tariffs are doing at that point,” Taylor said.

The companies are taking a wait-and-see approach, hoping to maintain their current pricing and inventory levels until the impact of the tariffs is clearer.