In April, Coffee shops like Red Eye Coffee and Ground Ops were uncertain of how tariffs would affect them. Months later, the shops are feeling the impact of higher prices and lingering uncertainty.
Red Eye Coffee says a 50% tariff on Brazilian coffee beans forced them to increase prices by 50 to 75 cents for customers. Ground Ops Roastery and Bakery is absorbing the 10% tariff on Guatemalan coffee beans but have been paying more for ingredients. Watch the video to hear more of the impact to owners and why uncertainty still lingers.
BROADCAST TRANSCRIPT:
The last time ABC 27 checked in on Tallahassee coffee shops, owners were bracing for trade war impacts.
Recently, judges ruled President Donald Trump’s tariffs illegal.
But they remain in place as he seeks an appeal, and the shops are feeling the impact.
Our Brazilian coffee used to be our cheapest, Red Eye Coffee General Manager Max Hansen said.
Hansen says tariffs forced them to re-evaluate costs.
That one has almost tripled in price since about five years ago, and only recently, it’s jumped even more, he said.
Their coffee beans come from countries facing at least a 10% tariff, or more like Brazil, which is under a 50% U.S. tariff.
Its changed how much customers pay at the counter.
If I went in there right now and ordered like a small Brazilian coffee, how much would that cost me now compared to a couple of months ago? ABC 27s Brieanna Smith asked Hansen.
That would be about 50 cents more, about 75 cents, he said.
Its an increase that connects to some of FSU Professor of Economics Randall Holcombes predictions, like higher prices for businesses, slowdowns in hiring, and an uptick in inflation.
There are some statistical indicators that the economy is slowing down, maybe as a result of the tariffs, Holcombe said.
But the bigger impact is the uncertainty.
President Trump announces them, he delays them, he cuts them back, Holcombe said. It’s a tough situation for local businesses.
That hasnt been the case for Ground Ops Roastery.
We checked back in with Ground Ops Owner Chris Smith.
He says theyre able to absorb those costs.
We’re at 10% tariffs with Guatemala, Smith said.
But raw ingredients for its baked products are more expensive.
Its sad when you have to pay retail pricing on individual products, he said.
Food prices this July were almost 3% higher than in 2024, according to USDA researchers.
Ground Ops is leaning on increased orders and delivery services to avoid raising prices for customers.
We remain, you know, very firm on our non-negotiables as taking care of our customers and making sure we don’t pass off, you know, pricing on to them that’s not consistent with what we need, Smith said.
Tariffs will remain in place until Oct.14, according to the U.S. Court of Appeals’ decision.
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