As new tariffs inflate coffee import costs, Louisiana roasters like J.M. Smucker Co. are raising prices. A 10% tariff on all imports, announced under President Trump, has strained an already volatile coffee market. Global price swings and trade policies have pushed roasters to pass costs to customers. Smucker, which employs nearly 700 workers, confirmed price hikes. Other Louisiana companies, including Community Coffee and French Truck Coffee, have followed, citing higher expenses for green beans.
Tariff effects ripple through the coffee market as Brazil faces a potential 50% tariff on goods by August 1. Even roasters not sourcing directly from Brazil could see price jumps due to global market dynamics. Baton Rouge’s Highland Coffees warns that tariffs on one region often push demand—and costs—up elsewhere. Meanwhile, Highland Coffees owner Clarke Cadzow continues crafting unique blends from diverse imports to offset reliance on any single supplier. This instability complicates pricing strategies, forcing businesses to adapt quickly. French Truck Coffee added a temporary 4% surcharge in stores, while others renegotiate supplier contracts or trim profit margins.
Brazil’s tariffs trigger global coffee price hikes; roasters add surcharges, renegotiate contracts amid shifting demand.
Rising import costs also expose supply chain challenges. Stockpiling beans isn’t a fix—coffee ages quickly, risking quality. Roasters must balance inventory needs with freshness, especially before busy seasons like winter holidays. Logistical hurdles and tariffs compound pressures, leaving less room for error. “You can’t just buy a year’s worth of beans and hope prices drop,” one industry expert noted.
Consumers now bear the brunt. A $12 bag of coffee may cost $1-2 more, squeezing budgets amid broader inflation. Community Coffee faces backlash from loyal customers questioning repeated hikes despite falling green bean costs. While some companies absorb tariffs short-term, most can’t sustain it. “Prices won’t go back down even if tariffs lift,” a roaster admitted.
With over 1,000 U.S. coffee companies adjusting rates since 2023, Louisiana’s local roasters face a fragile balance: Stay competitive or risk losing customers unwilling—or unable—to pay more.
