Tariffs are hitting coffee and tea prices, with few alternatives available

Key takeaways:

• New 10% tariffs on imported coffee and tea hit cafés and bakeries hard

• Owners report rising supply costs, smaller orders, and shrinking lines

• Consumers switch to plain brews and home brewing as prices jump

Americans’ daily coffee and tea fix is becoming noticeably more expensive as new tariffs on imported beans and tea ripple through local cafés and bakeries. With the U.S. imposing sweeping 10% tariffs on most imports starting April 5, café owners across the country are already feeling the sting — and passing the cost onto customers.

"Of course I'm worried," said Jorge Prudencio, owner of Bread Bite Bakery in Washington, D.C., in a BBC report. "We’ll definitely be increasing prices just to break even." His coffee distributor in Colombia, where much of his supply originates, has already raised prices — and warned that another hike is on the way.

Imported beans, rising costs

Coffee and tea are overwhelmingly imported commodities in the United States — the world’s second-largest importer, according to the U.S. Department of Agriculture. With those supply lines now subject to tariffs, coffee sellers are scrambling to adjust.

The U.S. imports 90% of its coffee and 80% of its tea. Major producers including Brazil, Colombia, Ethiopia, India, and China are affected by the tariffs so no alternative sources come easily to mind and you can't start growing coffee in your backyard. 

There are some smaller coffee growers in Central America who aren't affected by the tariffs and they may be able to take up some of the slack, although rising demand will no doubt translate to higher prices there as well. 

At Au Lait Café, just down the street from Bread Bite, manager Kamal Mortada has already noticed shorter queues and lighter orders. “We have less customers for coffee,” he said. “Most customers just get plain coffee instead of adding syrups and milks.” Menu prices have jumped 25%, and many buyers are downsizing to smaller cups.

Ground coffee prices had already hit a record high in March 2025 — a full dollar more than the previous year and $3 more than in 2020 — even before tariffs kicked in.

Meanwhile, café owners are also being squeezed by broader inflation. Prudencio says egg prices — essential for his bakery — have skyrocketed, going from $42 to more than $100 per case in just weeks. Egg prices hit a record $6.22 per dozen in March, according to the Consumer Price Index.

“This is something everybody is going through,” Prudencio said. “We all pay the price.”

Small roasters brace for sales drop

Joel Finkelstein, who runs Qualia Coffee Roasters in D.C., told the BBC the tariffs are just the latest blow in a long trend of rising costs. He blames part of the price pressure on the rollback of USAID funding under former President Trump, which previously supported South American coffee growers.

“We are going to see a decrease in sales,” Finkelstein said. “People are cutting back.”

Even café managers themselves are making lifestyle changes. Mortada said he’s stopped going to Starbucks and now brews coffee at home.

With inflation driving up prices across categories — and trade policies adding further strain — the days of the cheap, café-crafted cup of coffee may soon be behind us.

Retail prices soar as well

Brewing coffee and tea at home isn't immune from price hikes either. Retailers have started to raise shelf prices. Some major grocery chains report wholesale price increases of 12–15% for premium coffees and 8–10% for bulk teas.

Of course, even with rising prices, home-brewed coffee and tea will always be cheaper than coffee shop prices and retailers report a noticeable shift toward brewing at home, with increased sales of ground coffee and home brewing equipment. 

And as for tea, importers are lobbying for exemptions, arguing that limited domestic production can't meet demand.