Coffee shop prices soar as tariffs impact local businesses

In the United States, local coffee shops are facing significant economic challenges due to increased coffee prices driven by tariffs and a bad growing season. Specifically, coffee prices have risen by 21% over the past year, heavily impacting small businesses like Roots Roasting, located in St. Paul, Minnesota. As of last month, Brazil, which supplies a majority of the coffee in the U.S., is grappling with 50% tariffs. This situation was intensified by adverse weather conditions that adversely affected coffee production, further escalating prices. Peter Poire-Odegard, the owner of Roots Roasting, opened his café seven years ago and has experienced shifting market dynamics firsthand. He noted that after streamlining operations as much as possible, he reluctantly raised prices twice this year. For instance, a regular cup of coffee now costs $3.80, up from $3. During the first half of the year, he spent 50% more on green coffee compared to the same period in the previous year. According to Poire-Odegard, the price increases are directly tied to factors such as a bad growing season and new tariffs on Brazilian coffee imports. In response to these hikes, Poire-Odegard is observing a change in customer behavior. Although many patrons are continuing to visit, there has been a noticeable reduction in specialty drink orders. More customers seem to prefer ordering less expensive drip coffee, though the shop still sees a steady stream of visitors. Poire-Odegard points out that coffee is often one of the last luxuries consumers are willing to forgo; with about two-thirds of Americans drinking coffee daily, he remains hopeful that his café will adapt despite the challenges. The U.S. Congress is considering introducing a bill known as the "No Coffee Tax Act" aimed at exempting coffee from tariffs, which could help lower prices. For any legislative changes to be implemented, the bill would need President Trump's approval. However, the White House has expressed support for implementing tariffs as a means to strengthen the U.S. economy and protect American workers. Amid this uncertainty, small business owners like Poire-Odegard continue to navigate a volatile market where consumer habits may shift significantly as a result of rising prices.