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Climate Shocks and Tariffs Push Coffee Prices to Record Highs

Washington, D.C., USA
May 05, 2025 4 Negative General
Climate Shocks and Tariffs Push Coffee Prices to Record Highs
Global coffee futures have soared to decade-high levels, driven by extreme weather limiting harvests in major producing nations and new US tariffs on imported beans. Brazil’s severe drought last year halved coffee production, intensifying supply shortages. Vietnam, Ethiopia, and other exporters report lower yields from erratic rains and pest outbreaks tied to shifting climate patterns. Meanwhile, the Trump administration enacted a 10% tariff on coffee imports, aiming to pressure foreign trade partners but inadvertently piling costs on roasters and consumers. Many small roasteries in the US say bean prices have doubled in just a few months. Coffee-lovers now face higher prices for a basic daily staple, as roasters pass along surcharges. Experts predict continuing volatility if climate extremes persist and US trade policies remain uncertain.
What this means for you:
Expect coffee prices to keep climbing—some cafés already raised menu prices by 10–20%.
If your budget feels the strain, try buying in bulk, exploring alternative blends, or choosing roasters that lock in prices via long-term contracts.
In the meantime, keep aware of coffee’s environmental footprint—supporting sustainable farming can mitigate climate impacts.

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