Coffee Prices Surge 14.5% As Tariffs On Imports Like Tea And Spices Squeeze Small Businesses

Coffee prices jumped 14.5% in July from a year earlier, pushing the average retail cost for a pound of ground coffee to $8.41, according to the Bureau of Labor Statistics. While overall food prices were unchanged from June, small businesses selling tariff-affected imports like coffee, tea, and spices report steep cost increases. Owners say tariffs on items such as Indian tea, avocados, tomatoes, and specialty spices are squeezing margins and forcing price hikes. The Tax Foundation estimates nearly 74% of U.S. food imports face tariffs, with industry experts warning that companies dependent on foreign-sourced goods have few alternatives. Retailers also expect product availability changes, especially for fruits and other imported goods.