Former Trump’s senior economic advisor Steve Moore discussed the role of the Federal Reserve in the US economy, the President’s tariff and ‘The Bottom Line’.
Americans are paying more for their coffee because prices for caffeinated commodities are near record levels due to global production headwinds and more costs from imported coffee are exposed to tariffs.
The most recent version of the Consumer Price Index (CPI) released by the Bureau of Labor Statistics has shown that Coffee prices A year ago in August, 20.9% was up and increased by 3.6% on a monthly basis. The highest annual price profit has been reported in the data chain since 21.2% reading in July 2011, and in July 2022, the covid is at the top of reading 20.3% amid inflation growth.
Prices of coffee subgroups rose to an uniform degree, with BLS reporting that roasted coffee prices were 21.7% year-to-year and 4.1% in August on a monthly basis, while the immediate coffee cost was 20.1% from a year ago and 4.9% from the East month.
The US is highly dependent on imported coffee and lacks capacity for domestic production on a large scale, with less than 1% Americans coffee produced in the United States. Prices have increased in the last one year due to global production challenges Imported coffee tariff,
Coffee prices have also taken a hit from tariffs as well as global production challenges. (Justin Sulivan / Getty Image / Getty Images)
The United Nations Food and Agriculture Organization (FAO) stated that global coffee prices rose 38.8% from the previous year in 2024, which increased prices, including the supply in Vietnam, Indonesia and Brazil, including bad weather. About half of Brazil and Vietnam Global coffee productionAccording to FAO.
Brazil continues to experience dry weather that can affect this year’s coffee production, and it comes Trump administration Tariffs have been raised on coffee imports. The White House imposed a flat 10% tariff on imports in April, which came in contact with coffee, and then proceeded with 50% tariff on imports from Brazil in late July.
VP Scott Linnasicom, the Cato Institute of General Economics and Business, reported that the Fox Business has increased the growth in the price of coffee, the two main factors and tariffs that increase the price of coffee.
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The US imports almost all coffee that consume Americans. (Istock / istock)
He said, “If you see what the prices of coffee have done in the last few months, they have certainly taken a step of a ladder – they spikes, and then they are slightly flattened, and then they have gone up again. And this is the other where you are actually talking about a tariff effect.”
“When you are indispensable Raise taxes On a product that cannot be built only in the United States and for which we call Inlestic Demand, meaning: I am a coffee addict, a lot of coffee addicts, we are not going to reduce our consumption much if the prices rise, “Lincicom explained.
He said, “When you have that situation, global coffee producers do not need to worry about whether they are charging too much or whatever, they can just pass the consumer and I think it seems that what is going on,” he said.
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President Donald Trump unveiled the “mutual” tariff on American business partners in April. (Chip Somodeville / Getty Image / Getty Image)
Lincicome recently released one by the Trump administration executive Order This indicates that the US will be ready to zero the tariffs on products that the President determines that there are sufficient quantities of adequate quantity in the US as part of the trade agreements.
“The problem you get with a blanket tariff is that if you just apply the tariff indiscriminately, you catch a lot of products, which have no meaning to apply the tariff for those things. But there is a problem that you get in the minute you believe, so you have to start exception and carvings, then you have to claim and then they are more claimed, and then they claim and then Said.
