Americans face high coffee costs due to definitions and production issues

The Americans pay more for their coffee because the prices of caffeine commodities are close to record levels due to the opposite winds of global production and the high costs of imported coffee exposed to tariffs.

The latest version of the Consumer Prices Index (CPI) issued by the Labor Statistics Office showed this Coffee prices It increased by 20.9 % from last year in August and rose 3.6 % on a monthly basis. This is the highest annual price profit for the data chain since the reading of 21.2 % in July 2011, and the reading of 20.3 % was topped in July 2022 amid increased inflation.

The prices of sub -groups of coffee increased to a similar degree, as BLS informed that the prices of roasted coffee increased by 21.7 % on an annual basis and 4.1 % on a monthly basis in August, while the cost of immediate coffee increased by 20.1 % from last year and 4.9 % of the previous month.

The United States relies heavily on imported coffee and lacks domestic production capacity, as less than 1 % of Americans have been produced in the United States. This does not leave a little opportunity to increase the local offer at a time when prices rise during the past year due to the global production challenges that are now exacerbated Definitions that strike imported coffee.

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The Food and Agriculture Organization (FAO) has noticed that global coffee prices increased by 38.8 % in 2024 of the previous year due to show disorders, including stormy weather in Vietnam, Indonesia and Brazil, causing high prices. Brazil and Vietnam represent about half of them Global coffee productionFor each Food and Agriculture Organization.

Brazil continues to experience dry weather that can affect this year’s coffee production, and it comes as Trump administration The tariffs were raised on coffee imports. The White House imposed a 10 % flat tariff on imports in April, which was exposed to coffee, then moved forward with a 50 % tariff on imports from Brazil at the end of July.

Scott Lincum, Vice President for Public Economy and Trade, told Fox Business that the main workers who pay the high price of coffee are the factors of production and global definitions.

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He said: “If you look at what the coffee prices have done over the past few months, they have definitely made some of the stairs of the stairs – they have risen, then they settled a little, then they ascended again.

“This is inevitable Taxes On a product that is simply underestimated in the United States, which is what we call the unsuccessful demand, meaning: I am addicted to coffee, there is a lot of coffee addicts, we will not decrease our consumption much if the prices rise, “Lincicome explained.

“When you have this position, there is no need for global coffee farmers to worry about whether they are reciting too much or anything else, they can only transfer that to the consumer and I think this seems to be what is going on.”

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Lincicome noticed that the Trump administration recently released Executive order This indicates that the United States will be ready to get rid of the customs tariff for the products determined by the president is not available in the United States in sufficient quantities as part of the commercial agreements.

“The problem that you enter with a comprehensive tariff is that if you only apply the definitions randomly, you end up to catch up with many products that it does not mean that applying the definitions to these things. But there is a problem that you enter at the moment you realize this, then you have to start making exceptions, then people come to Washington and call more,” as he explained.

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