By Marcelo Teixeira
NEW YORK (Reuters) – Paramount Coffee Company, one of the largest roasters and distributors of coffee in the United States’ Midwest region, has hiked prices due to U.S. tariffs.
The National Coffee Association has requested an exemption from 10% tariffs imposed on most goods imported into the U.S. as the United States – the world’s largest consumer of coffee – is unable to produce the beans. So far, there has been no decision from the government.
The tariffs are only exacerbating pain for the U.S. coffee industry. Prices for beans surged 70% in 2024 and are another 15% this year after bad weather hit production in key countries.
“These changes are a direct result of recent government decisions regarding international tariffs on coffee and other imported goods sourced outside the United States,” Paramount said in a May 20 email to clients seen by Reuters.
“These developments have significantly impacted our costs, making price adjustments necessary,” it said.
The email did not specify the size of the hikes. Paramount did not immediately respond to a request for comment outside business hours.
The industry may also have to grapple with damaging “reciprocal” tariffs that are currently suspended, such as the hefty 46% rate on goods from Vietnam, the world’s second-largest producer of coffee. If bilateral talks do not result in a deal, those tariffs could return after July 9.
(Reporting by Marcelo Teixeira; Editing by Edwina Gibbs)
Comments