Historic High Coffee Prices Are Arriving — And Tariffs Are Making It Worse
Back in March, I wrote about the looming rise in coffee prices for this year’s harvest. The primary drivers behind this increase are climate change and a steady rise in global coffee consumption which has now outpaced production for several consecutive years. You can read that article here.
As I write this, freshly harvested 2025 coffees from Central America are landing on our shores. We are now paying over 60% more than we did last year for some of our most popular regional offerings — before factoring in an additional 10% tariff. These are truly historic, record-breaking price levels.
The National Coffee Association is actively challenging the new tariffs. They rightly point out that the U.S. produces less than 1% of the world’s coffee (primarily in Hawaii and Puerto Rico). Unlike tariffs on manufactured goods or crops with robust domestic production, coffee tariffs offer no protection to American farmers and provide no realistic incentive for increased local cultivation. Instead, they create further economic disruption to coffee consumers.
Our commitment has always been to quality, from top regional coffees scoring 86+ points to rare micro-lots secured through highly competitive international auctions. The sharpest price increases have occurred in the broader-volume, lower-price segment of the market. Ironically, the rarer and more exceptional the coffee, the less it has been impacted by fluctuations in the commodity futures market.
Unfortunately, many roasters are now turning to lower-grade coffees in response to these rising costs. George Howell Coffee will not follow that path. We remain committed to offering only the finest coffees, regardless of the price pressures.
To uphold this commitment, we will be adjusting some of our coffee prices to reflect rising costs. However, we are absorbing as much of the impact as possible, resulting in significantly reduced margins on our end.
Transparency has always been a core part of our ethos. While price increases can be uncomfortable, we won’t shy away from discussing the realities behind them, from the complexities of coffee sourcing to the broader business implications. We believe our customers deserve honesty and clarity, always.