Whereas Consumer Price Index of last month Food prices have been shown that tariff-sensitive items such as coffee beans, special tea and spices are showing signs of inflation, showing signs of inflation, worrying about small businesses selling products.
According to the Bureau of Labor Statistics, coffee prices rose 14.5% in July year after year. The average retail price for a pound of ground coffee was $ 8.41. Overall, food prices were unchanged from June to July, but 2.9% higher than a year ago, data shown.
Jessica Simmons, owner of Bethani Coffee Shop at Lincoln, Nebraska, told CNBC that her shop had seen prices from 18% to 25% since January.
“We had to impose a 3% fee on coffee because we are waiting for our new menu to be printed, reflecting the new price,” Simmons said. “But the prices have changed so soon that we cannot reprise the menu once every time the price increases.”
Simmons said that apart from coffee, the shop is paying increased prices on avocado and tomato.
“We also have a restaurant and we employ 24 people,” Simmons said. “We are at a point where we have no option but to increase prices. Our margins are thin. Small businesses are struggling with the increasing cost of tariffs.”
Tax Foundation recently calculated This is about 74% ($ 163 billion) US food imports will face tariffs.
AKIN’s senior advocate Josh Teitelbaum said that companies importing unavailable natural resources such as coffee or coconut water are not on-on-on-off to avoid tariffs.
“His ability to move sourcing to other countries is limited,” said Titailbam. “They feel that they are facing a high tariff from where they import. The administration has a policy to adjust this reality in some examples, but it is still a task.”
Anjali Bhargava, the founder of Anjali’s Cup, who creates retail spice package of turmeric and tea blends inspired by Ayurveda, said almost all her caffeine sources come from abroad. Bhargava’s spices are obtained from Vietnam, Thailand, Africa and South America; Tea and Peppercorn from India; Saffron from Afghanistan; And special retail tin packaging is made in China.
Bhargwa said, “Consumers will still drink tea, but they can get less quality products from companies that can weather these costs.” “Small, bootstraped brands that prefer integrity and authenticity can be completely squeezed.”
Bhargava is concerned about 50% tariff on tea from India, and stated on retailers where its product is sold, like hole foods, there is very little space for changes in the major price.
“The President frames it as punishing India, but it will mainly harm American small businesses, companies and their employees as well as American consumers.” “50% tariff on tea, not to mention tariffs on my spices and other requirements, will destroy my already thin margin and force me to increase the prices that customers are already baffling, taking advantage of my big contestants.”
Bhargava has given concessions on its packaging, which was built in China, but CNBC reported that it refuses to compromise on the material.
Bhargava said, “This tariff forces an option between maintaining quality and staying in business, and many small businesses will not escape that option.” “My tea focuses on a focused organic single-original Assam CTC tea that I can only get from India; there is no alternative source. I can’t tolerate Stockpile like my big contestants, especially how the playground is already.”
Also, there are concerns that the effect of tariff will proceed in other products at grocery stores. Business leader’s line in KPMG’s products, according to Heather Rice, by cutting the Snap program by the Big Beautiful Bill, it can lead to less forecasting from all retailers.
“About 9% of spending comes from recipients,” Rice said, who oversees consumer, retail, industrial manufacturing, energy and life science practice. “I believe that the amount of products on the shelves, where they make their products source will change on this basis. Between our crops and exports, we can have 12 months out of the year. But I think with the tariff, we can see a change where you have no blueberries throughout the year. I think we can see a product.”
Other fruits and beans grown in the United States face tariffs, including bananas and kiwi.
Bhargava said that the global trade war is going to hurt everyone.
“Coffee shops are already fighting to survive and need to protect your margin to maintain light. When authentic, quality products become ineffective, the entire supply chain suffers. Tariffs will end diverse, authentic businesses that make American markets live.”
