Climate change is making coffee more expensive. Tariffs likely will too.
NEW YORK — With her purple-and-pink hair swaying, Reneé Colón stands on a stepladder in the rented corner of a warehouse, pouring Brazilian coffee beans into her groaning old roasting machine.
The beans are precious because they survived severe drought in a year when environmental conditions depressed coffee production globally, doubling the price of raw beans in just months.
“Unfortunately, coffee is going to become more scarce,” said Colón, founder and roaster at Fuego Coffee Roasters. “Seeing that dramatic loss of the Brazilian crop is a perfect example.”
Losses from heat and drought have cut production forecasts in Brazil and Vietnam, the world’s largest coffee growers. Global production is still expected to increase, but not as much as commodity market investors had expected. That’s sent coffee prices up, largely because of continued high demand in Europe, the U.S., and China.
Prices peaked in February but have remained high, forcing roasters like Colón to weigh how much of that cost to absorb and how much to pass on to consumers.
The beans Colón was roasting cost her $5.50 per pound in early March, more than double what they cost in September. And that was for mixed, midrange beans. Specialty coffees — grown in delicate climates to slow growth and add flavor — can cost even more.
President Donald Trump’s current 10% tariffs cover most coffee-producing countries, including Brazil, Ethiopia and Colombia, and are expected to drive up costs for Americans. Amid his chaotic tariff pronouncements — at one point he threatened 46% tariffs on Vietnam imports and 32% on Indonesia imports before pausing them — American coffee roasters are rethinking their supply chains.
“With all these changes in coffee maybe we should open our own damn farm,” Colón muses.
Rural New York isn’t an option, of course. The world’s best coffee thrives near the equator, where seasons are long, and in high altitudes, where slow growing allows beans to gather flavor. But Puerto Rico, where Colón and her husband have roots, isn’t a serious option, either — labor costs are too high and she worries about the increasing risk of crop-damaging hurricanes.