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Tariffs
Reciprocal tariffs on coffee were suspended effective November 13 for all countries. The 40% tariff remaining on coffee from Brazil, the world's largest producer, was suspended a few days later. The coffee commodity market has remained firm, at or near all time highs, in large part on supply and demand concerns. It has been a volatile market for the past year.
While coffee entering the US after November 13 will be without tariff, that will only affect coffee arriving in the future. For the most part, coffee now in inventory in the US has tariffs included. Almost all coffee producing countries have an annual crop, so we will not benefit from the effect of the tariff abatements until the next crop cycle. Our current pricing stays the same until such time occurs.
Our focus is to keep quality steady regardless of how policy may shift.
Unless we are the direct importer, as we sometimes are, we cannot identify the specific tariff amount. While we do not intend to margin or magnify any tariff we pay, we must pass them through to our customers as a product cost in order to maintain our business.