President Trump’s tariffs might lead to increased costs for popular grocery items Americans frequently purchase, such as coffee, olive oil, wine, matcha, and various spices.
Since the “liberation day” tariffs were implemented globally in early August, both consumers and businesses are monitoring potential price hikes closely.
Recent inflation data, released on Tuesday, indicates that overall food prices haven’t risen significantly yet. However, economists predict this might soon change as companies transfer rising costs to consumers. Wholesale prices surged 0.9% last month—the highest since June 2022—which suggests that inflation could still be a concern.
Martha Gin Bell, director of Yale’s budget lab, commented, “We’ve seen a lot of work in the business.” She added, “We can’t buy a year’s worth of avocados. Still, the current food price increase has been relatively stable, so we’ll have to see what happens.”
Here are six well-known imported grocery items that may be impacted by the tariffs.
Coffee
Coffee prices had already seen an uptick before Brazil’s 50% tariffs took effect. They’ve increased by 25% over the past three months. Reports indicate Brazilian coffee exports are experiencing delays in reaching U.S. markets.
Your morning coffee experience could vary based on brand, location, and bean choice. For instance, Nespresso Pods, produced entirely in Switzerland, face a hefty 40% customs duty, while Colombia, the second-largest coffee exporter to the U.S., is only subjected to Trump’s baseline 10% tariff.
Some importers might look for sources outside the affected countries, but often, the cost increases get passed down to the consumer. A writer pointed out that coffee is too crucial a commodity to be caught in a geopolitical tug-of-war.
Representative Ro Khanna (D-Calif.) mentioned that bipartisan support is likely for a bill aimed at eliminating coffee tariffs.
Olive Oil
The tariffs add to the uncertainty faced by olive oil producers, already grappling with climate challenges. Spain’s drought in 2022 has notably reduced olive production, compounding issues that other regions like Sicily and Greece are also facing due to extreme weather.
Allen Dosi, co-founder of olive oil brand Glaza, noted that rising import costs might lead to price hikes. He explained that many distributors require advance notice for such changes, which can take several months to implement. The company relies on Spanish olives for production, making it difficult to maintain price stability.
Dosi remarked, “We’re not stocking up too much, as quality must remain a priority.” Shifting to U.S. production wouldn’t negate tariffs on Spanish olives, given local production doesn’t meet the same standards.
Spain and Italy comprised two-thirds of U.S. olive oil imports in 2024, both now subject to 15% tariffs per a trade agreement reached with the European Union.
Wine
The July U.S.-EU trade agreement is seen as just a starting point. Ongoing negotiations are pressing for tariff exemptions on wine and spirits, according to reports. Industry groups warn that the wine and liquor sector could face nearly $2 billion in losses, which might lead to significant job losses across the U.S.
Eric Foret, a wine buyer for Le French Wine Club, expressed that although they’ve raised prices, customers have remained relatively tolerant. The tariffs impact not just France—responsible for a third of U.S. wine imports—but also Italy and Spain.
Matcha
Japan’s 15% tariffs may influence the costs of matcha lattes, an already pricey item. While U.S. trade data doesn’t track matcha specifically, Japan is a significant supplier of green tea. There are concerns over the impacts of Japan’s record heat wave on matcha production.
David Cooper of TEA’s Spot of Tea shared that he feels fortunate to have procured stock before the tariffs and shortages. However, he feels anxiety about maintaining inventory levels and managing supplier orders.
Uncertainty extends to supplies like cups, sourced from Korea, as tariffs are also affecting those imports.
Chocolate
Switzerland, known for its chocolate, faces some of the highest tariff obligations globally. Certain manufacturers have begun producing goods in the U.S. to avoid these tariffs. However, others still source raw materials internationally, which could be impacted by tariff increases.
The CEO of Läderach commented on the frustration surrounding tariffs and the unexpected costs associated with them, expressing the sentiment that there’s not much to be done about it but to seek a sense of calm amid the challenges.
Swiss officials are also negotiating with Washington regarding tariffs that impact other sectors, such as cheese, while considering cuts to U.S. fighter jet orders amid rising costs.
Spices
Last week, Trump raised tariffs on Indian spices to 50%, surprising many. India is the leading supplier of various spices to the U.S., while Indonesia is now facing a 19% tariff after negotiations.
The American Spice Trade Association highlighted that many imported spice varieties can’t be grown domestically and support numerous U.S. jobs in processing and distribution. McCormick has estimated the tariffs could cost them around $90 million annually and plans to increase prices accordingly by year-end.
