Americans are waking up to a more expensive cup of coffee — and President Donald Trump’s new tariffs on foreign nations are at the center of the brewing storm.
According to fresh government data, coffee lovers are now paying record-high prices as Trump’s “America First” trade policies take effect, aiming to protect U.S. jobs and punish foreign countries accused of unfair trade practices.
Coffee Prices Surge as Inflation Creeps Up
The Department of Labor released its August Consumer Price Index (CPI) report, revealing that coffee prices skyrocketed by 20.9% over the past year.
- Instant coffee prices jumped 20.1%
- Roasted coffee soared 21.7%
The average price for a single pound of 100% ground roast coffee now sits at $8.87, up sharply from $7.02 in January.
Meanwhile, overall inflation rose slightly to 2.9%, up from 2.7% in July, showing how tariffs and global economic pressures are starting to ripple through the economy.
Why Coffee Costs Are Skyrocketing
The United States relies almost entirely on imported coffee beans, with top suppliers including:
- Brazil – $2 billion in coffee imports
- Colombia – $1.5 billion
- Switzerland – $1.2 billion
- Canada – $582 million
- Guatemala – $437 million
President Trump has slapped steep tariffs on many of these nations:
- Switzerland: 39% tariff
- Canada: 35% tariff
- Brazil: recently raised to 50%, following disputes over trade policies and former Brazilian President Jair Bolsonaro’s prosecution, which Trump strongly opposed.
These tariffs took effect August 1–7, and the results were immediate. Imports of Brazilian coffee dropped by over 80% year-over-year by early August, according to shipping data platform Vizion.
Other Everyday Products Also Getting Pricier
Coffee isn’t the only household staple seeing major price jumps.
- Ground beef surged 12.8% year-over-year
- Audio equipment jumped 12.2%
Experts say beef prices are climbing due to a combination of tariffs on key export nations and production challenges inside the U.S.
This means grocery bills across America are climbing, hitting families and retirees especially hard — and these prices could continue to rise through the holidays.
Global Factors Adding to the Pain
While tariffs are a major factor, global weather disasters are also driving up costs. Severe droughts in Brazil and Vietnam—two of the world’s largest coffee producers—have limited the global supply of beans.
“Coffee prices will continue to rise… Climate extremes like drought and flooding are getting worse, and this affects the entire global food supply,”
said Mike Hoffman, Professor Emeritus at Cornell University, in a recent interview with CNBC.
The Bigger Picture: Trump’s America First Strategy
President Trump has made it clear that these tariffs are part of his “America First” agenda, designed to bring manufacturing back to U.S. soil and reduce dependence on foreign nations.
While these moves are tough on foreign exporters, they are beginning to reshape global trade and strengthen America’s negotiating power on the world stage.
For now, the short-term pain is being felt by everyday consumers — especially those who can’t start their day without coffee.
What Consumers Should Expect Going Forward
Industry analysts warn that coffee prices will stay volatile through the rest of 2025, with a steady upward trend likely. Importers and coffee companies may need to diversify sourcing strategies, breaking their reliance on one or two major suppliers.
“The U.S. coffee market is entering a period of uncertainty,”
stated a recent Vizion report. “Real-time data and flexible sourcing will be key to surviving these new trade dynamics.”
Bottom Line: Tough Trade Policies, Pricier Morning Brews
President Trump’s tariffs are protecting American industries and sending a strong message to foreign nations that play unfairly.
However, for everyday Americans, it means higher prices at the grocery store — and a more expensive cup of morning coffee.
As Trump pushes forward with his hardline trade strategy, consumers will need to brace for ongoing price volatility well into the new year.