Daijiworld Media Network- Washington

Washington, Aug 28: Coffee lovers in the United States are in for another jolt as fresh tariffs on imports from Brazil are set to make their morning cup significantly costlier. Futures markets are already witnessing the steepest monthly surge in over a decade, as tariffs pile pressure on an industry grappling with reduced global supplies.

JM Smucker Co., the owner of popular brands Folgers and Café Bustelo, announced on Wednesday that it will increase coffee prices in early winter to offset tariff-related costs. The company had already raised prices in May and August this year.

Brazil, the world’s largest coffee producer, has seen its exports to the US slapped with a 50 per cent levy, compared to the earlier 10 per cent rate. While existing inventories and shipments arriving before October 5 will escape the higher duty, roasters say the new tariffs will soon push retail prices up.

Tim Cofer, CEO of Keurig Dr Pepper Inc., said last month that tariff impacts will “become prominent” in the second half of the year, while Westrock Coffee’s CFO Chris Pledger admitted that “these added costs are ultimately passed through to our customers.”

The global coffee trade has already been reeling from poor harvests in Brazil and Vietnam, both of which reported shrinking crop yields last year. With tariffs now compounding supply woes, roasters fear a double hit — higher prices and shrinking consumer demand.

Mark Smucker, CEO of JM Smucker, admitted the hikes could lead to a sales volume decline “in the low- to mid-teens,” even as revenues rise from increased retail prices.

For US consumers, already paying record-high coffee rates, the coming months could see their daily caffeine fix become an even more expensive ritual.