Monday is National Coffee Day, meaning caffeine lovers can find a free or discounted cup of coffee pretty easily. But come Tuesday, it's back to regular prices — and those are significantly higher than they were this time last year.
Over the last 12 months, the price of a cup of coffee has climbed 20.9%. From July to August alone, it saw a 4% jump, according to the Consumer Price Index. That's the biggest one-month increase in 14 years.
Coffee, for the most part, isn't grown domestically. It's primarily imported from Venezuela, Columbia, and Brazil. All of these countries are facing reciprocal tariffs, in some cases as high as 50%. Those additional costs come as drought and inclement weather have caused supply disruptions, which are impacting baseline costs.
Things could be getting worse, too. The head of Brazil exporter group Cecafe says coffee exports from that country to the U.S. are likely to decline if tariffs remain in place. Coffee sales from Brazil were already down 46% in August, meaning the U.S. was no longer the biggest market for Brazilian growers.
As of Sept. 20, exports to the U.S. from Brazil were down 20% from where they stood in August.
All of this follows a big jump last year. The United Nations' Food and Agriculture Organization reported earlier this year that global coffee prices rose 38.8% in 2024 due to unfavorable weather.
The increase in coffee prices isn't limited to Starbucks $SBUX and other coffee retailers — home brewers are feeling it as well. Folger's plans to raise prices this winter, which will be the third increase this year by the brand.
That's unlikely to quell American's thirst for a cup of joe. Coffee demand remains strong, says the National Coffee Association. Roughly two-thirds of American adults drink coffee every day.