Coffee prices were already rising when the United States imposed new tariffs on coffee imports in April following last year’s poor harvest. Those tariffs have since been lifted, but prices at grocery stores and cafes remain high, leaving many shoppers wondering why a simple cup of coffee costs so much.
As of September, the price of roasted coffee sold in stores was up about 41% from 12 months ago, rising from an average of $6.47 to $9.14 per pound, according to the latest data from the Bureau of Labor Statistics.
During volatile times, prices can fluctuate by about $1 within a year, but the nearly $3 increase in the latest BLS data is unusually steep, and consumers are taking note.
“This is ridiculous,” Chuck Smith, 52, said in a TikTok video from August, showing a receipt for a 38.2-ounce Maxwell House ground coffee he bought at his local Walmart in Indiana. The price almost doubled to $21.44 in less than a year.
Smith said she spontaneously filmed the clip after noticing the price hike in the grocery store aisle. “In that moment, it was just me,” he told CNBC Make It, adding that the reaction “captured what a lot of people were feeling.” Walmart and Kraft Heinz, which makes Maxwell House, did not respond to requests for comment.
Other brands, including Nespresso and Folgers, also raised prices last year.
Restaurant coffee prices are also rising, with the average cost of a regular cup rising from $3.46 to $3.57 in the year ending October 2025, according to restaurant and cafe price data tracked by menu software company Toast.
What’s behind the biggest coffee price hike in decades?
The data shows that the average retail price increase for coffee is the steepest and most sustained increase since the BLS began tracking coffee prices in 1980.
Weather problems came first. In 2024, drought and heavy rains disrupted harvests in Brazil and Vietnam, tightening supplies well before tariffs took effect.
Coffee futures prices have since risen from about $2 a pound in May 2024 to a peak of $4 a pound by April 2025, one of the market’s steepest increases in decades, according to Intercontinental Exchange data. Because futures serve as a benchmark for what importers and roasters pay for beans, sharp price increases often lead to higher costs, which can ultimately be reflected in retail prices.
Tariffs are another factor. In April, the United States imposed new tariffs on coffee imports. Major coffee-producing Latin American countries were hit with a 10% tax, Asian producers around 20%, and Brazil was hit hardest at 50%. Since then, coffee prices at grocery stores have increased about 21%, according to Consumer Price Index data.
In mid-November, the White House lifted most of the new coffee tariffs, eliminating tariffs on nearly all producing countries except Brazil, which maintained a 40% tariff. Last week, the administration also eliminated the remaining 40% tariff on Brazilian coffee, effectively eliminating duties on coffee imports from nearly all major exporters.
Retail prices typically lag wholesale costs, so it can take some time for relief to hit store shelves. Still, the elimination of tariffs should ultimately help relieve some downward pressure on prices, according to the National Coffee Association, an industry group.
An NCA spokesperson told CNBC Make It that “significant coffee price inflation occurred while the tariffs were in place.” “The removal of tariffs on the world’s major coffee producing countries is expected to significantly reduce costs.”
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