How U.S. Tariffs on Brazilian Coffee Are Brewing Higher Prices for Your Cup

How U.S. Tariffs on Brazilian Coffee Are Brewing Higher Prices for Your Cup

August 1, 2025Alex Torello

The recent tariffs imposed by former President Donald Trump on Brazilian imports have sent ripples through the coffee industry, with notable impacts on price, supply, and business operations here in the U.S. At Kaldi.com, we want to keep our community informed about how such economic policies affect the coffee you love.

Brazil, as a global coffee powerhouse, supplies nearly 30% of the coffee imported into the United States. This makes the country a critical player in our coffee supply chain. Unfortunately, a steep 50% tariff on Brazilian coffee imports instituted under Trump’s administration has pushed prices upward substantially. As of July 2025, this tariff hike has contributed to a staggering 14.5% year-over-year increase in coffee prices.

These tariffs were driven largely by political tensions, linked to U.S. pressure on Brazil regarding legal actions against former Brazilian President Jair Bolsonaro. In response, Brazil has taken a firm stance by refusing negotiation efforts and seeking alternative markets. China, in particular, has become a key destination for Brazilian coffee exports, benefiting from favorable trade conditions that allow Brazil to circumvent the U.S. market.

For U.S. coffee lovers and businesses, the tariffs have several consequences. Retailers face higher wholesale costs, often passing those costs onto customers through price hikes sometimes reaching 25%. Small, independent coffee shops and specialty spice retailers that rely on authentic Brazilian coffee and related products are most vulnerable, grappling with squeezed profit margins and difficult choices—raising prices, cutting quality, or limiting product variety.

At Kaldi.com, our commitment remains to bring you the best coffee experience. We are monitoring these developments closely and exploring sustainable ways to navigate the changing landscape, ensuring that our offerings remain both excellent in quality and accessible.

We understand that these supply chain challenges may be frustrating, but by staying informed and adapting, we can continue to enjoy quality coffee despite shifting global dynamics. Thank you for being a valued member of the Kaldi coffee community — your passion for coffee is what drives us.

Stay tuned for updates, and as always, savor your next cup of coffee with the confidence that Kaldi.com is working hard behind the scenes for you.

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