New tariff hikes brew a coffee crisis across the USA
Although Donald Trump suspended tariffs on specific countries for 90 days, a new general 10 percent tariff has been in effect since April 5. The effects of its introduction are already visible. Americans now have to pay more for coffee.
Cafes in the USA are raising coffee prices, as reported by American and British media, including Business Insider, CBS, and BBC. As of April 5, a new 10 percent general tariff on imports to the USA is in effect. Even though Donald Trump exempted some products from tariffs (e.g., phones and laptops), this does not apply to coffee. According to calculations by Business Insider and BBC, the United States is the second-largest importer of coffee in the world. They primarily import beans from Brazil and Vietnam, but also from Colombia, Ethiopia, and Guatemala, among others.
Chris Kornman from Royal Coffee, a company that imports coffee to the USA, reports to Business Insider that suppliers have already raised prices. If his company didn't follow suit, their business wouldn't be viable. He comments that the coffee industry is experiencing an "unprecedented crisis." The Crown cafe in Oakland, California, owned by this company, has already raised the prices of all coffees by 50 cents, with the exception of one basic menu item.
For example, The Wakery cafe in Springfield, Illinois, has also raised prices. A 25 percent increase occurred at the Au Lait cafe in Washington, according to BBC. The manager admits that there are now fewer customers. Reports of this type are coming in from all over the country.
Further increases possible
Some owners also point out that if Donald Trump does not reach an agreement with other countries in three months and resumes country-specific tariffs, prices could go up again. Even without imposing new tariffs, cafe prices were already rising due to general inflation.
On April 2, President Donald Trump announced a package of new tariffs on most trading partners, with different rates for different countries. In addition, he introduced a general 10 percent rate. This 10 percent rate came into effect on April 5, while the differentiated rates for specific countries began on April 9. That same day, Trump announced that he was suspending their enforcement for 90 days. During this time, he plans to talk with his trading partners and negotiate new trade rules.
“People were getting a little queasy,” said US President Donald Trump on Wednesday, justifying the decision to suspend tariffs. Trump said he was observing the financial markets, which had been "glum" in recent days.
Donald Trump attributed the 90-day suspension of tariffs to what he described as minor concerns raised by the public. The true reason was the "bordering on panic" concern of the White House over the bond market, NBC News commented on Wednesday. According to "Economist," bonds have become the most significant opponent of the US President.
