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Trump’s Tariffs on Brazil and Vietnam Drive U.S. Coffee Prices Up Nearly 21% This Year

Summarized by NextFin AI
  • On September 11, 2025, coffee prices in the U.S. surged by 20.9% compared to last year, the largest increase since the 1990s.
  • The rise is attributed to tariffs imposed by President Trump, including a 50% levy on Brazilian coffee and 20% on Vietnamese imports.
  • In August alone, coffee prices rose by 3.6%, with companies like Corvo Coffee raising prices from $2.50 to $3.75 due to increased costs.
  • These tariffs have introduced volatility and higher costs for U.S. importers, directly impacting retail coffee prices nationwide.

NextFin news, On Thursday, September 11, 2025, the U.S. Bureau of Labor Statistics released data showing that coffee prices in the United States have surged 20.9 percent compared to the same time last year, marking the largest increase since the 1990s. This sharp rise is attributed in part to President Donald Trump’s tariffs imposed on major coffee-producing countries Brazil and Vietnam.

The Consumer Price Index data revealed that coffee prices rose 3.6 percent in August alone. The tariffs, which include a 50 percent levy on Brazilian coffee imports and 20 percent on Vietnamese imports, have significantly increased the cost of importing green coffee beans into the U.S.

Prior to the tariffs, coffee companies were already facing supply challenges due to droughts in Brazil and Vietnam, which pushed global coffee prices higher. Many companies initially absorbed the additional costs from the blanket 10 percent tariff imposed in April 2025, but the steeper tariffs on Brazil and Vietnam have forced roasteries and coffee shops to raise prices.

Corvo Coffee, a coffee shop in New York City, recently increased the price of a drip coffee from $2.50 to $3.75, citing rising costs and tariffs as the reason. The shop communicated to customers that the price adjustment was necessary to maintain quality and reliability.

These tariffs are part of President Trump’s broader trade policy, which has introduced volatility and higher costs for U.S. importers. The tariffs on Brazil and Vietnam, two of the world’s largest coffee exporters, have had a direct impact on retail coffee prices across the country.

Ben Casselman contributed to the reporting. The original report was published by The New York Times and written by Sydney Ember, a business reporter covering the U.S. economy and labor market.

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Insights

What are the main reasons behind the increase in U.S. coffee prices this year?

How do tariffs affect the pricing of imported goods like coffee?

What specific tariffs were imposed on Brazilian and Vietnamese coffee imports?

How have droughts in coffee-producing countries impacted the global coffee market?

What was the Consumer Price Index change for coffee in August 2025?

How have coffee shops in the U.S. responded to rising bean costs due to tariffs?

What broader trade policies has President Trump implemented that affect coffee prices?

What are the long-term implications of tariffs on U.S. coffee prices?

How do consumer reactions to price increases impact coffee shop businesses?

What role do Brazil and Vietnam play in the global coffee supply chain?

How do other coffee-producing countries compare to Brazil and Vietnam in terms of export volume?

What historical precedents exist for trade tariffs impacting commodity prices?

What challenges do coffee companies face beyond tariffs affecting their operations?

Could the rise in coffee prices lead to changes in consumer purchasing behavior?

How have other industries been affected by similar trade policies?

What are potential alternatives for U.S. coffee importers facing high tariffs?

What specific actions have coffee companies taken to mitigate increased costs?

How do tariffs on coffee compare to tariffs on other beverages or commodities?

What are the potential effects of these tariffs on the future of the U.S. coffee market?

How do government policies influence agricultural pricing globally?

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