High coffee and tea prices due to customs tariffs

while Consumer price index last month It showed that food prices were effective monthly throughout the month, and sensitive elements of tariffs such as coffee beans, specialized tea and spices show signs of inflation, worrying small companies that sell these products.

According to the work statistics office, coffee prices increased by 14.5 % in July on an annual basis. The average retail price of the Earth’s coffee was $ 8.41. In general, food prices have not changed from June to July, but they remained 2.9 % higher than last year, as the data showed.

Jessica Simons, the owner of the Bethani Café in Lincoln, Nebraska, CNBC that her store has witnessed 18 % price increased to 25 % since January.

“We had to put 3 % fees on the coffee because we were waiting for the printing of our new lists, which reflects the new price,” Simons said. “But prices have changed quickly so that we cannot reprint the menus every time the price rises.”

Simons said, in addition to coffee, the store is paying an increase in prices on avocado and tomatoes.

“We also have a restaurant and hire 24 people,” Simons added. “We are at a stage where we have no choice but to raise prices. Our margins are thin. Small companies are struggling with high identification costs.”

The Tax Corporation was recently calculated It is approximately 74 % ($ 163 billion) From us you will encounter food imports.

Josh Titlbum, chief adviser in Akin, said that companies that import natural resources not available such as coffee or coconut water do not have a summer option to avoid customs tariffs.

“Their ability to convert sources into other countries is limited,” said Titilibum. “They feel stumbled in the face of a higher tariff, regardless of its import. The administration has a policy to accommodate this reality in some cases, but it is still under progress.”

Anjali Bahrva, founder of the Angali Cup, said that almost all the sources of caffeine come from abroad. Bhargava spices from Vietnam, Thailand, Africa and South America are obtained; Tea and pepper from India. Saffron from Afghanistan; It feeds on retail tin packages in China.

“Consumers will continue to drink tea, but they may get low -quality products from companies that can overcome these costs,” Bahrva said. “Possible small brands that give priority to integrity and originality can be clicked completely.”

Bhargava is concerned about a 50 % tariff on tea from India, and she said in retailers where her product is sold, such as Whole Foods, there is no big room for major price changes.

Bahrgava said: “The president frames that he is punishing India, but it will primarily harm small companies, companies and their employees, as well as American consumers.” “The tariff on tea by 50 %, not to mention the customs tariffs on spices and other necessities, will destroy my slim margins already and can force me to raise the prices that customers already possess, given the benefit of big competitors.”

Bhargava made concessions on her packages, which were manufactured in China, but she told CNBC that she refused to settle the components.

“This customs tariff forces the choice between maintaining quality and staying in the field of business, and many small companies will not survive this choice.” “My Chai Concentrate Assam CTC uses organic tea that I can only get from India; there is no alternative source. I can’t afford storage costs like my biggest competitors, especially given the actual level of the stadium.”

There are also concerns that the effect of definitions will flow into grocery stores into other products. This can be more amplified by discounts in the Snap program by Big Beauty Bill, all of which lead to less predictions of retailers, according to Heather Rice, Line of Business Leader, in the CPMG product section.

“Nearly 9 % of the spending comes from these recipients,” said Rice, who oversees the consumer, retail, industrial industrialization, energy and life sciences. “I think the amount of products on the shelves will change based on the place where their products are made. Between our crops and exports, we can have blue berries for 12 months of the year. But I think it is with definitions, we can see a change there, as you do not have blue berries throughout the year. I think we can see a productive shift.”

It includes other fruits and beans that have not been planted in the United States that face definitions banana and kiwi definitions.

Bahrgava said that the World Trade War will harm everyone.

“The cafes are already fighting to survive and need to protect their margins to maintain the lights. When authentic products become unsure, the entire supply chain suffers. Definitions will eliminate various and authentic businesses that make American markets vibrant.”