Your morning brew just got pricier: coffee costs jump as tariffs bite

If your latte suddenly costs more, it’s not your imagination. Coffee prices are ripping higher—and tariffs are a big reason why.

The Labor Department’s August Consumer Price Index shows coffee up 20.9% over the past year, the steepest jump since the ’90s. Instant is up 20.1%; roasted coffee, 21.7%. Even the grocery-aisle staple—100% ground roast—now averages $8.87 per pound, up from $7.02 in January. Overall inflation accelerated to 2.9% year-over-year, but coffee is in its own league.

Why it’s happening

• Tariffs are kicking in. After a blanket 10% levy on many imports this spring, the administration stacked on steeper, country-specific rates. Brazil—the top supplier—was lifted to 50%; Switzerland to 39%; non-exempt goods from Canada 35%; Vietnam 20%; Indonesia 19%. Those higher rates began rolling in early August, just as new CPI data hit.
• Supply shock. Global coffee output has been squeezed by severe droughts in Brazil and Vietnam, pushing wholesale prices toward multi-year highs even before the tariff hikes.
• Trade flows are wobbling. US arrivals of Brazilian coffee fell 80%+ year over year in late July and early August, according to shipping tracker Vizion—evidence that importers are scrambling to rejigger sourcing.

“Prices will continue to go up, in my mind… Climate change isn’t going away,” said Cornell’s Mike Hoffman, pointing to intensifying droughts and floods. Vizion’s take: “Reliance on one dominant supplier is giving way to a more complex and uncertain trade environment.”

Roasters and cafés that ate earlier cost increases are now passing them through. One New York shop, Corvo Coffee, told customers it “held off… as long as possible” before raising a basic drip to $3.75 from $2.50, citing “rising cost and tariffs.”

Coffee isn’t alone. August also saw notable year-over-year jumps in ground beef (+12.8%) and audio equipment (+12.2%), part of a broader pattern of tariff-sensitive goods getting pricier.

The US imports almost all its coffee. Top suppliers last year: Brazil (~$2B), Colombia (~$1.5B), Switzerland (~$1.2B), Canada (~$582M), Guatemala (~$437M). With higher duties colliding with weather-hit crops, economists warn the tariff impact—muted earlier in the year—is now showing up in the data and could intensify into 2026.

Expect volatility and, absent a bumper harvest or tariff relief, a gradual uptrend through the rest of 2025. Importers are diversifying origins and chasing better logistics; consumers may see more blends, smaller bags, and frequent menu repricing.

Until weather cooperates and trade frictions ease, that daily cup is likely to keep creeping up in price.

Newsweek and the New York Times contributed to this report.