Consumers have remained relatively insulated from price increases caused by President Trump’s tariffs, as companies, in many cases, have chosen to absorb the higher costs of importing goods rather than pass on the expense.
But many Americans are now getting a daily reminder of the punishing taxes in the form of their morning cup of coffee.
Coffee prices rose 20.9 percent compared with the same time last year, the largest jump since the 1990s, according to the Consumer Price Index, released on Thursday by the Bureau of Labor Statistics. In August alone, the price of coffee rose 3.6 percent.
The spike was not unexpected. Coffee companies have been dealing with Mr. Trump’s tariffs for months, including the blanket 10 percent tariff that has made importing green coffee beans more expensive. But the magnitude of the leap compared with a year ago could reflect just how stiff the tariffs on some countries such as Vietnam and Brazil have become under Mr. Trump’s volatile trade policy.
Even before the steep tariffs took effect, coffee companies were dealing with issues with the global coffee supply, caused partly by droughts in Vietnam and Brazil, that were pushing up the cost of beans. Some had raised prices earlier to offset the higher global cost of coffee.
Many coffee companies initially tried to absorb the higher costs of the levies, including the blanket 10 percent tariff that was imposed on U.S. trading partners in April.
But with the sky-high tariffs on some coffee-producing countries now in effect, roasteries and coffee shops across the country appear to have run out of room to keep prices low for customers. Mr. Trump, for instance, has imposed a 50 percent tariff on imports from Brazil, 20 percent on Vietnam and 19 percent on Indonesia.
One coffee shop that has raised prices recently is Corvo Coffee in New York City. In a note to customers explaining its decision, it cited “the rising cost and tariffs.”
“We have held off on making this change for as long as possible,” the company wrote, “but in order to continue providing you with the same level of quality and reliability, this adjustment is necessary.”
Last week, it increased the price of a cup of drip coffee to $3.75 from $2.50.
Ben Casselman contributed reporting.
Sydney Ember is a Times business reporter, covering the U.S. economy and the labor market.
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