Charlotte NC, August 2, 2025
News Summary
Ryan Sanderson, owner of Knowledge Perk Coffee Company in Charlotte, faces a challenging future as proposed tariffs on Brazilian coffee imports could rise from 10% to 50%. Set to take effect in 2025, this increase threatens local coffee businesses by escalating costs, which might ultimately lead to higher prices for consumers. With Brazil supplying 37% of coffee globally, the ramifications on pricing and sourcing could reshuffle the local coffee market dynamics, affecting both operations and quality.
Charlotte, NC – The owner of Knowledge Perk Coffee Company, Ryan Sanderson, is facing uncertainty over President Trump’s proposed tariffs on Brazilian coffee imports, which could increase from 10% to a staggering 50%. This drastic change is set to take effect on August 1, 2025, and is expected to have a significant impact on the coffee industry, both locally and nationally.
Brazil is a pivotal player in the global coffee market, responsible for 37% of the world’s coffee production. For coffee businesses like Sanderson’s, which roasts beans from Brazil, Guatemala, Costa Rica, and Honduras, the impending tariffs will not only raise the cost of coffee beans but may also push supply chains toward less competitive alternatives.
According to Sanderson, the increased tariffs will not be absorbed by exporting countries, meaning his business will have to absorb the costs. He has already faced challenges when raising prices due to existing tariffs on Guatemalan coffee imports, making it clear that the goal isn’t to profit excessively but to support the community while maintaining operations and providing for employees.
Local coffee roasters, such as Hex Coffee, are predicting possible price increases for consumers, projected to be between $1.50 and $2 for coffee cups by the end of 2025. This projection underscores the larger impact that the tariffs could have on the local coffee market as consumers will likely bear the costs. The anticipated change comes as coffee prices are already on the rise due to inflation, high demand, and adverse weather conditions affecting major coffee-producing countries.
As the tariff situation evolves, there are concerns that small coffee businesses may struggle to renew contracts with Brazilian suppliers and look toward alternative sourcing options in countries like Colombia and Costa Rica. Although the quality of coffee may not change dramatically, the increased costs of sourcing from these countries will affect pricing for consumers. The potential shift in sourcing could further amplify the challenges faced by coffee businesses in terms of maintaining competitive pricing and quality.
The broader implications of U.S. tariffs on Brazilian coffee not only threaten direct coffee sales but could also force American companies to rely on less competitive suppliers regarding price and volume. As U.S. coffee consumption continues to surpass domestic production capabilities, the necessity for imports remains critical.
Trump’s rationale for the tariff increase is tied to political events, specifically citing Brazil’s handling of former President Jair Bolsonaro. This situation illustrates the complex interrelations between domestic policies, international economics, and the daily livelihood of local businesses.
In summary, the proposed tariffs are expected to present considerable challenges not just for Knowledge Perk Coffee Company but for the entire coffee industry in Charlotte and beyond. As businesses prepare for an uncertain future, many are watching closely how the impending tariffs will shape market dynamics and consumer pricing over the next few years.
FAQ Section
What is the proposed tariff increase on coffee imports?
The proposed tariff on Brazilian coffee imports is set to increase from 10% to 50%, effective August 1, 2025.
How will these tariffs impact local coffee businesses?
Local coffee businesses may face significantly increased costs which could lead to price hikes for consumers, potentially raising the price of coffee cups between $1.50 and $2 by the end of 2025.
Why is Brazil’s coffee supply critical?
Brazil accounts for 37% of global coffee production, making it essential for meeting the demand in the U.S., where coffee consumption exceeds domestic production capabilities.
What are the long-term consequences of the tariffs for coffee sourcing?
Long-term consequences may include difficulties in renewing contracts with Brazilian suppliers and potentially higher sourcing costs from alternative suppliers, which could affect the pricing and availability of coffee.
Chart of Key Features
| Feature | Details |
|---|---|
| Current Tariff Rate | 10% |
| Proposed Tariff Rate | 50% |
| Effective Date | August 1, 2025 |
| Brazil’s Global Coffee Production Share | 37% |
| Predicted Consumer Price Increase | $1.50 to $2 per cup |
| Impact on Long-Term Sourcing | Potentially higher costs and new supplier contracts |
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Additional Resources
- Spectrum Local News: Coffee Roaster Plans for Tariffs
- Wikipedia: Coffee
- MSN: Trump’s 50% Brazil Coffee Tariff
- Google Search: Coffee Tariffs
- Eat This: Foods Rising Prices due to Tariffs
- Encyclopedia Britannica: Tariffs
- MyFox8: Trump’s Tariffs on Brazil and Your Morning Coffee
- Charlotte Observer: Business Article on Tariffs
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