That Cup of Joe Is Getting Costly

It's getting more expensive for Americans to get their caffeine fix. The average US price of a pound of ground coffee hit $9.14 in September, a 3% increase from the August average of $8.87, and 41% higher than in September 2024, per US government figures. Coffee prices have been increasing sharply since the start of 2025, reports the AP. Consumer prices for food purchased for home use and away from home were 3% in September compared with the same month a year earlier, the US Labor Department reported Friday. The consumer price index, which measures a broader sample of all coffee products, including instant, showed US coffee prices up 19% from September 2024 and flat compared to August. Here's why java is feeling such a jolt:

• Tariffs: Outside of Hawaii and Puerto Rico, there are few places in the US that can grow coffee; 99% of America's coffee is imported, according to the National Coffee Association. Brazil is the top source for US coffee, supplying 30% of the market. The Trump administration imposed a 40% tariff on Brazilian products in July, on top of an earlier 10% tariff. Brazilian producers have begun withholding shipments to the US as they negotiate with American roasters over who will absorb the added cost, reducing supply in the US, per investment bank UBS.
• Other big producers: Colombia, which supplies 20% of the US coffee market, is subject to a 10% tariff, but President Trump recently threatened higher tariffs and an end to US aid to Colombia. Vietnam, which supplies 8% of the US coffee market, has been subject to a 20% tariff since the summer.

• Weather: Heat, drought, and other poor weather conditions have hurt coffee production globally in recent years, causing prices to surge. World coffee prices rose nearly 40% in 2024, per the UN's Food and Agriculture Organization. Earlier this month, coffee prices rose after the National Oceanic and Atmospheric Administration declared La Nina conditions had formed, raising concerns about the possibility of drought in Brazil.
• Congress: In September, a bipartisan group of US House members introduced a bill to repeal all coffee tariffs. "We only produce 1% of the coffee that Americans consume," said Rep. Ro Khanna, a California Democrat who co-sponsored the bill with Rep. Don Bacon, a Nebraska Republican. "It's one of the best examples of Trump's blanket tariffs making no economic sense."

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