American consumers are bracing for significant increases in the prices of their beloved coffee and chocolate due to new tariffs imposed by President Donald Trump on major coffee-producing countries.
New Tariffs and Rising Prices
The recent tariffs, which affect coffee imports from Brazil, Colombia, and Vietnam, are set to push prices higher in shops and cafés across the United States. This comes at a time when coffee bean costs are already on the rise due to supply shortages. Coffee imports from Brazil and Colombia, the world’s largest producers of high-quality arabica coffee beans, will face tariffs of 10%, while Vietnam, a major supplier of robusta beans, will see even steeper levies of 46%.
Impact on Consumers
Kona Haque, head of research at commodity trader ED&F Man, warned that these tariffs will „immediately” increase the cost of green coffee—the raw form of the beans—leading to inevitable price hikes for consumers. Haque emphasized that unlike other industries, such as automotive or shipbuilding, the U.S. cannot produce coffee and chocolate domestically to mitigate these costs.
Weather and Supply Chain Challenges
Adding to the problem, coffee prices have already been affected by unfavorable weather conditions in key growing regions, particularly in Brazil. The impact of climate-related phenomena has been profound, leading to significant drops in production. Green coffee bean exports from Brazil, for example, fell by 11.3% in December due to severe droughts and frost.
Chocolate Prices on the Rise
Chocolate lovers are not exempt from these developments either, as cocoa prices have nearly tripled over the past year, driven by extreme weather and diseases affecting harvests. The world’s largest cocoa producer, the Ivory Coast, is now facing tariffs of 21%, further complicating the price landscape for chocolate products.
Market Implications
Industry experts predict that the rising costs of both coffee and chocolate will lead to increased prices for consumers. Dirk Van de Put, CEO of Mondelēz, which produces popular snacks such as Oreo and Toblerone, noted that the company is grappling with „unprecedented cocoa cost inflation.” Starbucks has also warned that higher prices could impact their sales volume and profitability.
U.S. Coffee Consumption Trends
The United States is the largest importer of coffee globally, with Americans consuming around 146 billion cups annually. A staggering 63% of Americans enjoy a cup of coffee each morning. However, the U.S. produces only about 0.2% of the coffee it consumes, primarily from Hawaii, making it highly reliant on imports.
Conclusion
As tariffs take effect and weather conditions continue to challenge production, consumers can expect to see higher prices for coffee and chocolate in the near future. With the U.S. supply chain heavily dependent on imports, the impact of these tariffs may be felt long after they are implemented.
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