It’s becoming increasingly high-priced for Americans to get their caffeine fix.
The average U.S. price for a pound of ground coffee reached $9.14 in September, up 3% from the August average of $8.87 and up 41% from September 2024, according to U.S. government figures. Coffee prices have risen sharply since the beginning of this year.
Consumer prices for food purchased for at-home and away-from-home consumption were 3% in September compared with the same month last year, the U.S. Labor Department reported Friday. The Consumer Price Index, which measures a broader sample of all coffee products, including instant coffee, showed that U.S. coffee prices rose 19% since September 2024 and remained flat compared to August.
Nikki Bravo, co-owner of Momentum Coffee in Chicago, raised prices on lattes, cappuccinos and other drinks by about 15% at her four locations last week.
Bravo said she is paying 15% more for coffee beans compared to last year and has started roasting more beans herself to save money. She sources most of her beans from Africa.
Other items have also become more high-priced, such as cups and sleeves, she said. Additionally, Chicago’s minimum wage increased to $16.60 an hour on July 1.
“At some point we just had to pass it on, we couldn’t keep eating it,” Bravo said.
Stubbornly high inflation has also left consumers feeling uncertain and less willing to spend money on a takeaway coffee, she added. According to Toast, a restaurant management system, the average price for a regular coffee at U.S. restaurants was $3.54 in September, compared to $3.45 a year earlier.
Here’s why Java feels such a shock and how some are trying to alleviate it:
Tariffs
Other than Hawaii and Puerto Rico, there are few places in the United States that can grow coffee. According to the National Coffee Association, a trade group, 99% of American coffee is imported.
Brazil is the top source of U.S. coffee, supplying 30% of the market. The Trump administration imposed a 40% tariff on Brazilian products in July, on top of a 10% tariff previously imposed. According to investment bank UBS, Brazilian producers have begun holding back shipments to the U.S. while they negotiate with American roasters over who will bear the additional costs, reducing U.S. supply.
Colombia, which supplies 20% of the U.S. coffee market, is subject to a 10% tariff, but President Donald Trump recently threatened higher tariffs and an end to U.S. aid to Colombia. Vietnam, which supplies 8% of the U.S. coffee market, has been subject to a 20% tariff since the summer.
In September, Trump announced that “unavailable natural resources” could be exempt from tariffs for countries that have trade deals with the United States. However, so far coffee has not received any exemptions.
Weather risks
Heat, drought and other impoverished weather conditions have affected coffee production worldwide in recent years, causing prices to rise. According to the Food and Agriculture Organization of the United Nations, world coffee prices rose almost 40% in 2024.
Earlier this month, coffee prices rose after the National Oceanic and Atmospheric Administration said La Nina conditions had formed. This sparked concerns about a possible drought in Brazil.
Due to the threat to coffee production from climate change, some researchers are trying to develop more climate-resilient coffee varieties.
Congress could intervene
In September, a bipartisan group of members of the U.S. House of Representatives introduced a bill that would remove all tariffs on coffee.
“We produce only 1% of the coffee Americans consume. This is one of the best examples of how Trump’s blanket tariffs make no economic sense,” said U.S. Rep. Ro Khanna, a Democrat from California. Khanna co-sponsored the bill with U.S. Rep. Don Bacon, a Republican from Nebraska.
Bacon said Friday that he became interested in the issue when he saw how much coffee cost at the supermarket. He said he is also not a fan of tariffs and believes Congress — not the president — has the power to impose tariffs.
Bacon said he believes the Trump administration now realizes that imposing tariffs on products the U.S. cannot grow would be bad for consumers, and he is confident the bill will pass.
“I hope that the president and Congress see the positive benefits of eliminating this tariff for everyday Americans,” he said.
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Durbin reported from Detroit. Rugaber reported from Washington
