Trump's Proposed Tariffs on Brazilian Imports Could Increase Coffee Prices

President Donald Trump's proposed 50% tariff on Brazilian imports could lead to higher coffee prices for consumers. Brazil is the largest U.S. supplier of green coffee beans, providing about a third of the country's total supply. The U.S. coffee market reached $19.75 billion last year, with a significant portion coming from Brazil.

The potential increase in trade duties may result in even higher costs for consumers, following years of rising coffee prices due to global supply challenges. While there is still time for Brazil to negotiate with the White House before the tariffs take effect, coffee companies like Folgers, Keurig Dr Pepper, Starbucks, and Dutch Bros could face increased costs for the commodity.

One possible tactic to mitigate the impact of higher tariffs is to import beans from countries other than Brazil, but companies are likely to still pay more for the commodity. At-home coffee brands have already raised prices in response to rising costs, and more price increases could be on the horizon for consumers.

Starbucks, which imports coffee from 30 different countries, may see a modest increase in its cost of goods sold in North America. Dutch Bros, on the other hand, may experience a minimal impact on its bottom line due to lower coffee costs as a percentage of its total expenses.

According to the source: CNBC.