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Home»Personal Finance»Tariffs Are Coming for Your Coffee (and Matcha)
Personal Finance

Tariffs Are Coming for Your Coffee (and Matcha)

August 24, 2025No Comments2 Mins Read
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Nerd’s Eye View

A weekly look at what’s new and trending in personal finance.

Coffee prices are on the rise: Two-thirds of American adults drink coffee every day, with an average of three cups daily. Coffee is the most-consumed beverage in America, surpassing bottled water, tea, juice, and soda.

Most coffee is brewed at home, but the popularity of coffee on the go sustains numerous coffee houses across the country. The total economic impact of the coffee industry in the U.S. is $343.2 billion, supporting 2.2 million jobs.

Less than 1% of the coffee consumed in the U.S. is grown domestically, primarily in Hawaii and Puerto Rico. Recent tariffs imposed by President Donald Trump are affecting the coffee industry, particularly the levy on Brazilian coffee imports.

Coffee prices have been increasing due to droughts in major coffee-producing countries like Brazil and Vietnam. Climate change is predicted to significantly impact coffee production in the future, leading to a decline in yields worldwide.

Consumers may need to adapt to rising coffee prices by exploring different types and price points. Alternative beverages like matcha, a green tea powder, are gaining popularity but may also face price hikes due to increased demand and tariffs.

The percentage of Americans consuming alcohol has reached a historic low in 2025, driven by health concerns. Gallup surveys show a decline in alcohol consumption, with more people perceiving moderate drinking as harmful to health.

Beyond beverages

Recent tariffs negotiated between the European Union and the United States aim to eliminate tariffs on industrial goods and provide preferential access to agricultural and seafood products. The trade deal also includes commitments to energy purchases and investments in technology.

Market indexes fluctuated throughout the week but rebounded on Friday following optimistic remarks from Fed Chair Jerome Powell. Investors are anticipating earnings reports from companies like Nvidia.

Upcoming consumer data releases include the Consumer Confidence index and GDP revisions, offering insights into economic growth and consumer sentiments.

Alaska Airlines introduces a new premium card with enhanced perks and a loyalty program for a $395 annual fee, adding to the array of credit card options available.

Coffee Coming Matcha tariffs
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