That Cup of Joe Is Getting Costly
Coffee Prices Surge as Tariffs and Global Conditions Tighten Supply
It’s getting more expensive for Americans to get their caffeine fix. The average U.S. price for a pound of ground coffee hit $9.14 in September, up 3% from August’s average of $8.87 — and 41% higher than a year ago, according to federal data. Coffee prices have climbed sharply throughout 2025, the Associated Press reports.
Overall, consumer prices for food purchased both at home and away from home were up 3% in September compared with the same month in 2024, according to the U.S. Labor Department. The broader consumer price index for all coffee products, including instant coffee, showed prices up 19% year over year and steady compared to August.
Why Coffee Costs Are Climbing
Tariffs:
The U.S. imports about 99% of its coffee, as only Hawaii and Puerto Rico have climates suitable for large-scale production, per the National Coffee Association. Brazil, which supplies roughly 30% of America’s coffee, has been hit hardest by recent trade measures. The Trump administration imposed a 40% tariff on Brazilian products in July, following an earlier 10% tariff. In response, some Brazilian exporters have delayed or withheld shipments while negotiating with American roasters over who will shoulder the added costs, tightening U.S. supply, according to UBS.
Other Producers:
Colombia, the second-largest supplier to the U.S. with 20% of the market, currently faces a 10% tariff, and President Trump has signaled the possibility of higher tariffs and reduced U.S. aid to the country. Vietnam, which provides about 8% of America’s coffee imports, has faced a 20% tariff since the summer.
Weather:
Extreme weather patterns have also fueled the price surge. Global heat waves, droughts, and erratic rainfall have damaged harvests in key coffee-growing regions. The United Nations Food and Agriculture Organization reported that world coffee prices rose nearly 40% in 2024. Earlier this month, prices jumped again after the National Oceanic and Atmospheric Administration confirmed La Niña conditions, raising fears of new droughts in Brazil.
Congressional Pushback:
In response, a bipartisan group of House lawmakers introduced legislation in September to repeal all coffee tariffs. “We only produce 1% of the coffee Americans drink,” said Rep. Ro Khanna (D-Calif.), who co-sponsored the bill with Rep. Don Bacon (R-Neb.). “It’s one of the best examples of Trump’s blanket tariffs making no economic sense.”
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