Soaring Coffee Prices Surge On Tariff News

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Coffee prices have doubled during the last year because of the harsh climates in huge producing countries such as Brazil and Vietnam. Some coffee drinkers have found alternatives. The margins at coffee chains like Starbucks and Dunkin’ Donuts have been threatened. The problem may become much worse soon.

Reuters reports, “Companies have roasting, packaging and trading bases in both the United States and Canada in order to better supply clients. Potential U.S. tariffs and any retaliatory ones will now have to be considered when deciding what to make, and where, industry participants said.” The coffee trade with Mexico is also of considerable size.

25% Tariffs

The news service reports buyers have often taken on the 25% tariffs. This means coffee prices will soar again soon.

The coffee consumption statistics for the US show how broad the effects of tariffs will be. Americans consume 400 million cups of coffee a day.

The alternative to current coffee consumption patterns could bring down coffee prices.

Eggs And Cocoa

Add to this the prices of cocoa and eggs, each of which has almost doubled, to see the overall effect of inflation on the American public, even though the CPI’s increases have dropped considerably in two years.

Cocoa prices have been hit by crops in West Africa, the source of over 50% of the world’s coffee, due to harsh weather produced by climate change.

The cost of eggs is harder to trace, caused by the avian flu. One source reports that C”climate change may exacerbate the spread and emergence of avian influenza due to changing bird migration and possibly increasing the survival of the virus in the environment.