Coffee prices have risen by almost 20% since this time last year, showing the real-time effects of Trump’s trade war on America’s biggest coffee suppliers and of climate change on coffee production worldwide
Americans are paying more for their coffee, statistics show(Image: Getty )
Coffee prices in the U.S. are going up and do not appear to be decreasing anytime soon.
The average U.S. price of a pound of ground coffee hit $9.14 in September, a 3% increase from the August average of $8.87 and 41% higher than in September 2024, according to U.S. government figures. Coffee prices have been on the rise since the beginning of the year.
The consumer price index shows that U.S. coffee prices are up 19% from September 2024. The shift is part of a wider trend affecting groceries and other household goods that are imported into the U.S..
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A coffeehouse owner in Chicago spoke to the AP recently and admitted that they have been forced to raise the prices by about 15% for menu favorites like lattes, and cappuccinos.
Nikki Bravo said she is paying 15% more for coffee beans — which she imports mostly from Africa — compared to a year ago, and has started roasting more beans in-house to save money.
Bravo also clarified that coffee isn’t the only thing that’s getting more expensive. The business is paying more for items like cups and sleeves, she said. Furthermore, the minimum wage in Chicago rose on July 1 to $16.60 an hour.
The minimum wage in Chicago is also increasing, meaning a greater expense for independent coffee houses(Image: Bloomberg via Getty Images)
“At some point, we just had to pass it along — we couldn’t continue to eat it,” Bravo told the AP.
Around 99% of America’s coffee is imported according to the National Coffee Association, a trade group. Brazil is the top source for U.S. coffee, supplying 30% of the market.
Earlier this year, Trump imposed an additional 40% tariff on Brazilian products, bringing the total tariff to 50%. Now, Brazilian producers and American roasters are in a stand-off while they decide who will absorb the cost.
According to investment bank UBS, this has seriously impacted America’s supply chain. On top of this, poor weather conditions this year have also hurt coffee production all over the world.
Heat and drought, exacerbated by climate change, pose a major risk to coffee production. Earlier this month, it was reported that La Niña conditions had formed — a natural weather phenomenon that poses a risk of drought in Brazil.
If that happens, America will not be the only country to feel the effects of a shortage. According to the Food and Agriculture Organization of the United Nations, world coffee prices rose nearly 40% overall in 2024.
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