Seven months after slapping tariffs on major coffee exporters, despite the U.S. growing virtually none of its own, the Trump administration is now scrambling to contain the fallout.
After months of rising prices on everyday essentials, many of which the U.S. doesn’t and can’t produce, the administration is only now acknowledging the impact of its tariff policies and promising action.
In a recent appearance on “Fox & Friends,” Treasury Secretary Scott Bessent said Americans will “start feeling better” soon, pointing to tax cuts, tariff adjustments, and rising wages as the administration’s key strategies.
He specifically highlighted coffee, bananas, and other fruit as one of the goods the administration is targeting for tariff relief.
Why Your Coffee Costs More
Retail coffee prices are up nearly 21% from a year ago. A major factor: the administration’s July tariffs on the top coffee-producing nations.
Brazil, which supplies about a third of U.S. coffee imports, now faces a 50% tariff. Vietnam and Colombia face 20% and 10% duties, respectively.
Small roasters are feeling the squeeze. “Consumers are footing the bill for it,” said Mark Warmuth, owner of Swing’s Coffee Roasters in Washington, D.C., in an interview with CNN.
He called the current situation “really difficult across the board,” citing the combination of tariffs, labor costs, and environmental challenges. Customers could see prices rise by 10 to 15 cents per cup.
Chris Vigilante of Vigilante Coffee said the price of green coffee has jumped from $4 to as much as $6 per pound.
Company is trying to ”diversify our offerings and keep certain price points for our customer base,” he said, noting they may shift sourcing to avoid high duties.
Bessent Says Fixes Are Coming
In the Fox interview, Bessent acknowledged the pressure on consumers and businesses, but didn’t directly explain why coffee and bananas were ever targeted for tariffs in the first place, especially when the U.S. imports nearly all of both.
“You will see substantial announcement over [the] next couple of days in terms of things we don’t grow in the United States,” he said, adding, “You know, coffee, coffee being one of them, you know, bananas, other fruits.”
Bessent also emphasized the administration’s focus on wage growth.
“Imagine two lines: there’s the inflation line — we have that under control — and the income line,” he said.
“I would expect in first quarter, second quarter of next year those two lines will cross and American people will start feeling better.”
He cited new jobs from a Boeing facility and a rare earth plant in South Carolina as examples of growing industrial investment.
Tax Relief Aims to Boost Paychecks
Bessent outlined new tax measures, including President Trump’s pledge of “no tax on tips, no tax on overtime or Social Security.”
He said taxpayers who didn’t adjust their withholdings for 2025 would see “substantial” refunds at the start of 2026.
He framed this as a form of “natural real wage growth.”
Meanwhile, Congress Eyes Tariff Repeal
While the administration moves slowly, lawmakers are pushing faster fixes.
In September, Rep. Don Bacon (R-NE) and Rep. Ro Khanna (D-CA) introduced the No Coffee Tax Act, a bipartisan bill to remove tariffs on coffee imports.
For now, many small businesses remain in limbo. Doug Ilg, who runs Celtic Cup Coffee Roasting in Maryland, said he stopped buying Brazilian beans altogether after the tariffs.
He estimates customers now pay about 63 cents more per pound than they did in January.
Joel Finkelstein, owner of Qualia Coffee in D.C., said pricing uncertainty is making it hard to plan.
“Every small business, unless you’re in a very fortunate position, is constantly assessing whether it makes sense to stay open,” he said.
Whether the administration’s promised relief arrives in time remains to be seen. But for now, your cup of coffee isn’t getting any cheaper.
It’s a self-inflicted problem seven months in the making, and small roasters are still paying the price for it.