Trump's 50% Brazil tariff compounds supply disruptions as coffee prices continue to rise

Coffee prices in the U.S. are surging, nearing record highs, driven by global supply challenges and tariffs on imported coffee, increasing costs for consumers.

According to the Bureau of Labor Statistics’ latest consumer price index, coffee prices rose 20.9% year-over-year in August, with a 3.6% monthly increase—the highest annual jump since July 2011.

Roasted coffee prices climbed 21.7% annually and 4.1% monthly, while instant coffee rose 20.1% from last year and 4.9% from July.

The U.S., heavily dependent on imports with less than 1% of coffee produced domestically, faces limited options to boost local supply.

Global coffee prices jumped 38.8% in 2024, per the UN’s Food and Agriculture Organization, due to weather-related disruptions in major producers like Vietnam, Indonesia, and Brazil, which together account for half of global supply.

Ongoing dry weather in Brazil and new U.S. tariffs—a 10% flat rate on imports since April and a 50% tariff on Brazilian coffee since late July—are further driving up costs.